Answer:
<u>Contribution Margin Income Statement</u>
Sales (3,500 × $60)                                      $210,000            100%
Less Variable Costs (3,500 × $21)               ($73,500)             35%
Contribution                                                  $136,500              65%
Less Fixed Costs :
Fixed Factory Overhead Costs                   ($30,000)
Fixed Selling and Administrative Costs      ($48,000)
Net Income / (Loss)                                        $58,500
Explanation:
Variable Cost Ratio = Variable Cost / Sales × 100
                                 =  $21 / $60 × 100
                                 =  35 %
Contribution Margin Ratio = Contribution / Sales × 100
                                            = ($60 - $21) / $60 × 100
                                            = 65%
<u>Contribution Margin Income Statement</u>
Sales (3,500 × $60)                                      $210,000            100%
Less Variable Costs (3,500 × $21)               ($73,500)             35%
Contribution                                                  $136,500              65%
Less Fixed Costs :
Fixed Factory Overhead Costs                   ($30,000)
Fixed Selling and Administrative Costs      ($48,000)
Net Income / (Loss)                                        $58,500