Answer:
$
Sales 8,800,000
Less: Cost of goods sold (W1) 5,241,739.13
Contribution 3,558,260.87
Less: Fixed manufacturing cost 598,000
Less: Fixed selling and admin cost 320,000
Net Income 2,640,260.87
<em>(W1) Cost of goods sold</em>
Direct Material 3,450,000
Direct Labour 1,196,000
Variable manufacturing cost 782,000
Variable selling cost 600,000
Total variable cost 6,028,000
Less:closing inventory 786,260.87 (6,028,000/46,000*6,000)
COST OF GOODS SOLD 5,241,739.13