Please Solve Problem #1 only

231 Homework Managerial I Problem 1. Salmon Company makes Things. Things sell for $30 each and cost $10 each to make. Fixed costs are estimated to be $2,500,000 next year What is the breakeven point in units and sales dollars for Salmon based on the above information How many Things must Salmon sell to make $1,200,000 next year? Problem 2 Lama Lama Co. has given you the following income statement for June 2018. Sales Cost of goods sold Gross margin $500,000 300,000 200,000 Operating expenses Salaries and commissions Utilities Rent Other 80,000 20,000 22,000 18,000 140,000 Total operating expenses Income Lama Lama sells one product, very fine red pajam as for $100 each. A 10% sales commission, included in Salaries and commissions is the only other variable cost. The manager tells you that this financial statement is not very helpful to her. Redo the income statement using the contribution margin format. For Lama Lama's, determine the break-even in sales dollars and in units