ACC 255 Homework for Chapter 5 Hot Tubs Unlimited purchases hot tubs from a well-known manufacturer and sells them at the retail level. The hot tubs sell, on the average, for $2,500 each. The average cost for a hot tub from the manufacturer is $1,500. The additional January 2020 monthly costs for the company are listed: Cost Formula Costs Selling: Advertising Delivery of hot tubs Sales salaries and commissions Utilities Depreciation on sales facilities Administrative: Executive salaries Depreciation on office equipment Clerical $950 per month $60 per hot tub sold $3,800 per month, plus 4% of sales $650 per month $5,000 per month $13,500 per month $900 per month $2,500 per month, plus $40 per hot tub sold $700 per month Insurance During January the company sells 60 hot tubs. Required: 1. Prepare the monthly income statement in the traditional format and in the contribution margin format. 2. Calculate the contribution margin per unit and contribution margin ratio. 3. Calculate the breakeven point in units and in dollars of sales. 4. Calculate the margin of safety and margin of safety percentage. 5. Calculate the degree of operating leverage. 6. The company would like to earn $38,000 of net operating income. What will be the required sales in units and in dollars