a) Kingston Bakers Ltd. most recent monthly contribution format income statement is given below for 6000 units

	$
Sales (6000 units)	90,000
Less variable expenses	67,500
Contribution margin	22,500
Less fixed expenses	18,000
Net Income	4,500

Calculate:

(a) the company's contribution margin ratio? (2 marks)

(b) the breakeven points in units and in dollar sales? (4 marks)

(c) the margin of safety in units and dollar value if the companys intention is to sell 10000 units. (4 marks)

(d) How many units would the company need to sell if it wishes to make a profit of $25000? (2 marks)

(e) If unit sales were increased by 25% and fixed expenses were reduced by $4,000, what would be the company's expected net income? (Prepare a contribution margin income statement to represent your response) (6 marks)