A Company sells two types of lawn mower the fly-mo and the standard. The selling price of the Fly-mo is $188 and variable costs of $152.80. The Standard sells for $180 with the same variable cost.

Fixed costs are $255,840. The company sells the lawn mowers in equal proportions (i.e. in the same ratio).

1. What is break-even point in units (number of lawn mowers)? (2 marks)

2. What is break-even point in sales (in US$)? (2 marks)

3. Create a contribution income statement for break-even point. (2 marks)