Question 2: Use the income statement shown below to answer the following questions. [30 points) a) If known $ 9,000 of the general overhead is considered variable overhead, what are the contribution margin and the contribution margin ratio? b) Determine the break-even volume of work for the company with a fixed overhead of $47.827, the contribution margin ratio from (a), and a required level of profit of $23,000. c) If the company thinks the result of (b) in terms of break-even volume of work exceeds the volume of work that the company can perform, what are the possible ways for the company to meet the profit requirement ($23,000) for the next year? d) Determine the profit and overhead markup. WEST MOUNTAIN CONSTRUCTION INCOME STATEMENT REVENUE 789,839 CONSTRUCTION COSTS Materials Labor Subcontract Equipment Other Total Construction Costs 92.214 199,690 401,948 20,833 1.352 716,037 EQUIPMENT COSTS Rent and Lease Payments Depreciation Repairs and Maintenance Fuel and Lubrication Taxes, Licenses, and Insurance Equipment Costs Charged to Jobs Total Equipment Costs 3,773 6,673 2.734 7,289 364 20.833 0 GROSS PROFIT 73.802 OVERHEAD 53,827 NET PROFIT FROM OPERATIONS 19.975 OTHER INCOME AND EXPENSE 1,162 PROFIT BEFORE TAX 21,137 INCOME TAX 3,921 PROFIT AFTER TAX 17.216