Worksheet. Poleskis controller would like to have the worksheet display an income statement in a contribution margin format (sales-variable costs = contribution margin- fixed costs = net income).

Data Section
	Fixed	Variable
Production costs
Direct materials		$2.30
Direct labor		4.70
Factory overhead	$225,000	3.00
Selling expenses
Sales salaries & commissions	97,000	0.75
Advertising	47,500
Miscellaneous selling expense	16,200
General expenses
Office salaries	92,000
Supplies	12,300	0.25
Miscellaneous general expense	15,000
	$662,500	$12.50
Projected unit sales		156,000
Selling price per unit		$18.50
Target net income		$250,000
Answer Section
Contribution margin per unit		$6.00
Contribution margin ratio		32.43%
Break-even point in units		110,417
Units needed to achieve target net income		152,083
Break-even point in dollars		$2,042,708
Sales dollars needed to achieve target net income		$2,813,542
Net income based on projected unit sales (cell C22)		$273,500