ACME Incorporated produced and sold 30,000 units with the following results for the year ending January 31, 2023:

Sales price per unit $18

Administrative salaries paid per year 135,000

Sales commissions expense (per unit) 3.00

The cost formula for manufacturing a product for this level of activity is Y= $220,000 + $1.15x.

Required: 1. Prepare a contribution format income statement in good form.

2. Calculate the contribution margin per unit

3. How will the unit cost of goods sold be affected (increase, decrease, or stay the same) if production and sales units increase next year? Why?