Question: Question (20 points) Consider the following data for the year ended December 31, 2021 for Donalds Office Supplies. Per Unit Sales Price $625 Less: Variable

Question (20 points)

Consider the following data for the year ended December 31, 2021 for Donalds Office Supplies.

Per Unit

Sales Price

$625

Less: Variable Costs

$375

Contribution Margin

$250

Fixed Costs

$87,500

Currently sales are at 500 units.

ALL CALCULATIONS MUST BE SHOWN

Required:

  1. Prepare a Contribution Format Income Statement for the year ended December 31, 2021. Include the Total, Per Unit and Percentage totals in the income statement.
  2. Determine the sales in dollars and sales in units required to break even.
  3. Determine the sales in dollars and sales in units required to make a $200,000 profit per year.

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