1. Consider the income statement for Pickbury Farm:

Sales	$500,000
Variable Costs	350,000
Contribution margin	150,000
Fixed costs	80,000
Net Income	70,000

Q: At what sales level does Pickbury achieve a net income of $100,000?

2. The Blue Saints Bank is holding a concert in Toronto. Fixed costs relating to staging a concert are $350,000. Variable costs per patron are $5. The selling price for a ticket is $25. The Blue Saints Bank has sold 23,000 tickets so far. How many tickets does the Blue Saints Bank need to sell to achieve net income of $50,000 after income tax, assuming the income tax rate is 20%

3. Franklin Company manufactures bikes. During the year a new line is developed. The break-even point for this line of bikes is $300,0000 of sales with a contribution margin of 30%. Assuming that the profit for the line during the year amounted to $150,000, total sales during the year must have been: