Selling and administrative expenses, all fixed, amounted to \($180,000\) last year.1- Mello-Tote Company manufactures nylon arm-band carriers for use with popular portable MP3 devices. Variable costs are \($18\) per arm-band carrier, the price is \($28\), and fixed costs are $43,000.

Required:

1. What is the contribution margin for one arm-band carrier?

2. How many arm-band carriers must Mello-Tote Company sell to break even?

3. If Mello-Tote Company sells 6,000 arm-band carriers, what is the operating income?