This is problem 3-23A in Performance Measurement & Accounting Systems 7th edition-Managerial Accounting

Rosenthal Company makes and sells products with variable costs of $24 each. Rosenthal incurs annual fixed costs of $315,000. The current sales price is $87.

Required:

The following requirements are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements.

c-2.	Prepare an income statement using the contribution margin format.

d-1.	If the sales price drops to $80 per unit, what level of sales is required to earn the desired profit? Express your answer in units and dollars.

d-2	Prepare an income statement using the contribution margin format.

e-1.	If fixed costs drop to $280,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars.