3.2 Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of

$360. The company’s monthly fixed expenses are $72,000.

A. What is the company’s break-even point in units?

B. What is the company’s break-even point in dollars?

C. Prepare a contribution margin income statement for the month of January when they will sell 500 units.

D. How many units will Kerr need to sell in order to realize a target profit of $120,000?

E. What dollar sales will Kerr need to generate in order to realize a target profit of $120,000?

F. Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.