Use the same transaction data for Magnificant Modems, Inc., as was used in Chapter 1.

Required

a. Use the following partially completed form to prepare an income statement using the contribution margin form

b. Determine the break-even point in units and in dollars.

c. Assume that next year’s sales are budgeted to be the same as the current year’s sales.

Determine the margin of safety expressed as a percentage.

Sales revenue $600,000 Variable costs: Contribution margin 225,000 Fixed costs Net income $31,050