Multiple activity income statement Moose & Judy Company makes two sizes of barrels. The 10-liter barrel sells for $10 and has a variable cost of $7. It constitutes 70 percent of the company's sales. The 20-liter barrel sells for $20 and has a variable cost of $12. It makes up 30 percent of total sales. The company's total fixed costs are $36,000. Income taxes have been averaging 30 percent for the company and are not expected to change in the near future.

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REQUIRED a. Calculate the break-even volume of sales in units. b. Calculate the volume of sales needed to earn $6,930 of profit after taxes. c. Prepare an income statement showing contribution margin of each type of barrel with the volume you obtained in part b.