Answer:
Results are below.
Step-by-step explanation:
First, we need to calculate the total unitary variable cost:
Direct materials= 10
Manufacturing overhead= 5
Direct labor= 2
Selling and administrative= 5
Total unitary variable cost= $22
Now, the contribution margin income statement:
Sales= 5,000*38= 190,000
Total variable cost= 22*5,000= (110,000)
Total contribution margin= 80,000
Fixed Manufacturing overhead= (35,000)
Fixed Selling and administrative= (15,000)
Net operating income= 30,000