1. Finch Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $137 each. Finch incurs $377,200 of fixed operating expenses annually.

Required

A.

Determine the sales volume in units and dollars required to attain a $63,000 profit.

Sales volume in units
Sales volume in dollars

B.

Prepare an income statement using the contribution margin format.

FINCH CORPORATION
Income Statement
Sales
Variable cost
Contribution margin
Fixed cost
Net income