9. Given the following Income Statement for Maple Street Lemonade, LLC: MAPLE STREET LEMONADE, LLC Operating Statement Twelve Months Ended December 31, 2015 Total Year Per Case $ 100,000 $ 10.00 Sales - Lemonade (10,000 Cases) Variable Costs: Mfg Wages & Benefits Materials Packaging Supplies Delivery Services Total Variable Costs 3.50 1.50 35,000 15,000 5,000 5,000 0.50 0.50 60,000 6.00 Contribution Margin % C.M. $ 40,000 40.0% $ 4.00 40.0% 7,000 0.70 Fixed Costs: Rent & Utilities Executive Salaries & Benefits Depreciation Total Fixed Costs 20,000 2.00 0.80 8,000 35,000 3.50 Operating Margin (EBIT) O.M. $ 5.000 5.0% $ 50 5.0% Interest Expense 4.000 0.40 $ 1,000 $ 0.10 Earnings Before Taxes (EBT) Income Taxes @ 30% 300 0.03 $ 700 0.07 Earnings After Taxes (EAT) % Net Income .7% .7% a. What is the company's breakeven point in units and sales dollars? b. What is the company's breakeven point in sales dollars if total sales (not sell price per unit) were to decrease to $90,000 for the year? c. How many sales dollars will the company need if it wants to earn $150,000 in operating margin for the year? 10. Which of the following businesses would best benefit by using "Job Costing? (Select all that apply) a. Manufacturer of standard women's bicycles on a production line b. Manufacturer and installer of custom hardware and software systems c. Manufacturer of custom homes d. Builder of commercial office buildings 11. Contribution Margin and Absorption Costing Methods: a. When using the absorption cost (traditional) method for valuing "inventory on the balance sheet and "cost of goods sold on the income statement, fixed manufacturing overhead costs are excluded from these valuations. True False