Break-Even Point and Target Profit Measured in Sales Dollars (Multiple Products) Advanced Products Company produces three different CDs with the following annual data.

Assume the sales mix remains the same at all levels of sales.

Required 

Round your answers to the nearest hundredth of a percent and nearest dollar where appropriate. (An example for percentage calculations is .434532 = .4345 = 43.45%; an example for dollar calculations is \($378.9787\) = \($379.)\)

a. Using the information provided, prepare a contribution margin income statement similar to the one in Exhibit 6.1.

b. Calculate the weighted average contribution margin ratio.

c. Find the break-even point in sales dollars.

d. What amount of sales dollars is required to earn an annual profit of \($200,000\)?

e. Assume the contribution margin income statement prepared in requirement a is the company’s base case. What is the margin of safety in sales dollars?

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Music Data DVD Total Selling price per unit $10 $4 $12 Variable cost per unit $ 3 $1 $ 3 Expected unit sales 8,000 10,000 22,000 40,000 Sales mix 20% 25% 55% 100% Fixed costs $205,900