Use the same transaction data for Magnificent Modems, Inc., as was used in Chapter 1. (See page 52.)
Required
a. Use the following partially completed form to prepare an income statement using the contribution margin format.

                        

b. Determine the break-even point in units and in dollars.
c. Assume that next ycars sales are budgeted to be the same as the current year’s sales. Determine the margin of safety expressed as a percentage.