Answer:
Graph Picnic Time
Contribution Income Statement
For the Month of July
Sales                                               $400,000
Less variable costs:
Direct materials                              $100,000
Direct labor                                        60,000
Manufacturing overhead                  20,000
Selling and administrative                 16,000
Total variable costs                       $196,000
Contribution margin                     $204,000
Less fixed cost:
Manufacturing overhead $36,000
Selling and administrative 68,000
Total fixed costs                            $104,000
Profit                                              $100,000
Explanation:
a) Data and Calculations:
Selling price per picnic basket = $100
July Production and sales = 4,000 baskets
Variable Costs per Unit:
Manufacturing: 
Direct materials              $25
Direct labor                        15  
Manufacturing overhead   5
Total                               $45
Selling and administrative 4 
Total                               $49
Fixed Costs per Month 
Manufacturing overhead $36,000 
Selling and administrative  68,000 
Total                                 $104,000 
 
Contribution Income Statement
For the Month of July
Sales                                               $400,000 ($100 * 4,000)
Less variable costs:
Direct materials                              $100,000 ($24 * 4,000)
Direct labor                                        60,000 ($15 * 4,000)
Manufacturing overhead                  20,000 ($5 * 4,000)
Selling and administrative                 16,000($4 * 4,000)
Total variable costs                       $196,000
Contribution margin                     $204,000
Less fixed cost:
Manufacturing overhead $36,000
Selling and administrative 68,000
Total fixed costs                            $104,000
Profit                                              $100,000