a$.$ Prepare a contribution income statement for July.

SalesDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginManufacturing overheadSelling and administrativeProfit Answer $1$

Less variable costs:SalesDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginManufacturing overheadSelling and administrativeProfit Answer $2$

SalesDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginManufacturing overheadSelling and administrativeProfit Answer $3$

SalesDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginManufacturing overheadSelling and administrativeProfit Answer $4$

SalesDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginManufacturing overheadSelling and administrativeProfit Answer $5$

SalesDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginManufacturing overheadSelling and administrativeProfit Answer $6$

Less fixed costs:SalesDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginManufacturing overheadSelling and administrativeProfit Answer $7$

SalesDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginManufacturing overheadSelling and administrativeProfit Answer $8$

SalesDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginManufacturing overheadSelling and administrativeProfit Answer $9$

b$.$ Determine the break$-$even point in sales dollars.

Note: Do not round intermediate calculations

Note: Round up to the nearest dollar, enter $$80$ for $$79\mathrm{.}2$

$Answer $10$

c$.$ Suppose the cost of labor is expected to increase next year. How will this affect the

break$-$even point?

Break$-$even point will Answer $11$DecreaseIncreaseNot change

d$.$ Determine July's margin of safety in sales dollars.

$Answer $12$

e$.$ What dollar sales volume is currently required to obtain a before$-$tax profit of $$120,000?$

Note: Do not round intermediate calculations

Note: Round up to the nearest dollar, enter $$80$ for $$79\mathrm{.}2$

$Answer $13$