Answer:
The income statement is a report that shows the financial performance of a business for a over a given period of time, in this case a month.
Explanation:
Morning Smiles
Income statement for the Month
                                  $
Sales revenue         800,000 Â
Cost of sales             (612,000) Â
Gross profit              188,000
Less Â
Variable selling cost(5%×800,000) (40,000) Â
Contribution                148,000
Other selling cost          (45,000)
Administrative expense   (47,500)
Profit                    55,500
Cost of sales = 612,000/800,000= Â 76.5%
Gross profit  = 188,000/800,000=  23.5%
Variable sell. cost = 40,000/800,000 = Â 5%
Contribution = Â 148,000/800,000 = Â 18.5%
Other selling cost = 45,000/800,000= 5.6%
Administrative expe= 47,500/800,000 = 5.9%