3. Using the information provided below and assuming the company sold 6,000 units in the month of September:

1. Prepare an income statement using the contribution format.
2. Calculate operating income.
3. Calculate the contribution margin ratio (DO NOT ROUND).
4. Calculate the breakeven point in sales dollars
5. Calculate the breakeven point in volume (units).
6. If the company wanted to earn an operating income of $517,000:
   1. How much revenue would the company have to generate?
   2. How many units must the company sell if the sales price of $170 did not change?
   3. What assumptions would have to be made regarding the increase in volume?
   4. If its determined that an increase in volume would require greater fixed costs, what might the managers consider doing to increase revenue? Would your suggestion be guaranteed to increase revenue? Why or why not?

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