Picnic Time produces a picnic basket that is sold for $$116$ per unit. Assume the company produced and sold $4,000$ baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow.

Variable Cost per Unit

Manufacturing:

Direct materials. $$29$

Direct labor. $19$

Manufacturing overhead. $9$

Total $57$

Selling and administrative. $4$

Total $$61$

Fixed Costs per Month

Manufacturing overhead $$36,000$

Selling and administrative $76,000$

Total $112,000$

a$.$ Prepare a contribution income statement for July.

b$.$ Determine the break$-$even point in sales dollars.

Note: Do not round intermediate calculations

Note: Round up to the nearest dollar, enter $$80$ for $$79\mathrm{.}2$

c$.$ Suppose the cost of labor is expected to increase next year. How will this affect thebreak$-$even point?

Break$-$even point will $\_\_\_\_\_\_\_\_\_\_\_\_\_.$ d$.$Determine July's margin of safety in sales dollars. e$.$ What dollar sales volume is currently required to obtain a before$-$tax profit of $$120,000?$

Note: Do not round intermediate calculations

Note: Round up to the nearest dollar, enter $$80$ for $$79\mathrm{.}2$