Hi-Tech Incorporated produces two different products with the following monthly 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 for the month 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 a monthly profit of \($540,000\)?

e. Assume that the contribution margin income statement prepared in requirement a is Hi-Tech Incorporated’s base case. What is the margin of safety in sales dollars?

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Cell GPS Total Selling price per unit $100 $400 Variable cost per unit $ 40 $240 Expected unit sales 21,000 9,000 30,000 Sales mix Fixed costs 70% 30% 100% $1,800,000