1. A magazine company has the capacity to print and sell 200,000 magazines per month. It sells each magazine for $4.50 each, has fixed costs about $520,000 per month, and variable cost of $0.50 per magazine. a) Calculate the contribution margin and contribution ratio. b) What sales amount will result in a net income of $21,000? c) What will be the net income at capacity? 2. A company sells an item for $25 each. It has fixed costs of $2,025 per month and variable cost of $2.50 per item. It has the capacity to produce 3000 items per month. a) What is the breakeven revenue in volume per month? b) What is the number of items but it would have to provide to have a net income of $6,750 per month? c) What is the net income at capacity if the variable cost decreased by $0.50 per item?