B .The following is a pro forma income statement for Crazy Harry's. Use the numbers to calculate the Break even.

Crazy Harry's

Pro Forma Income Statement

Sales $96,000

Cost of Goods Sold 46,240

Gross Profit $49,760

Fixed Expenses

Rent $2,400

Insurance 3,000

Salaries 16,500

Taxes 1,100

Miscellaneous Fixed Expenses 900

Total Fixed Expenses $23,900

Variable Expenses

Wages $11,200

Advertising 5,700

Benefits 2,800

Other Variable Expenses 1,120

Total Variable Expenses $20,080

Net Profit $5,040

a. Identify and Total Crazy Harrys Variable costs (2 points)

b. Calculate Crazy Harrys Contribution Margin. (3 points)

c. Calculate Harry's break-even sales point.(5 Points).

d. Create a break-even chart for Harry. (4 points)