I need to prepare an income statement using the contribution method. And find what the contribution toward covering fixed expenses and earning profits were. Here is what I was given...
Sales 150000
COGS 90000
GM 60000
Operating expenses
Selling 30000
Admin 10000
Net operating income 20000

Shoes sell on avg for $750 per pair. Variable selling expenses are $50 per pair. Remaining selling expenses are fixed. The admin expense are 20% variable and 80% fixed. The company does not manufacture its own shoes, it purchases them from a supplier for $450.

Here is what I have so far...

Sales 150000
Variable expenses:
Production
Selling
Admin 2000
Contribution margin
Fixed expenses:
Production
Selling
Admin 8000
Net Oper Income 20000

Thanks for any help.

Your basic set-up is correct.

If you are selling the shoes for $750 each and total sales was $150,000, how many pairs did you sell?

Once you have that, you can figure out your variable selling at $50 per pair, with the remainder being fixed.

(What I'd really like to know is what the heck kind of shoes cost $750 each?? )