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The Peace Company has the following functional (traditional) income statement for the prior month.
Sales
($50 * 100,000 units)
$5,000,000
Cost of goods sold
Direct materials
$1,200,000
Direct labor
$950,000
Variable factory overhead
$600,000
Fixed factory overhead
$850,000
$3,600,000
Gross profit
$1,400,000
Selling and administrative expense
Variable
$250,000
Fixed
$120,000
$370,000
Operating income
$1,030,000
There were no beginning and ending inventories.
Required:
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