Additional facts of the case study:

From the total cost of sales, 40 percent is the total fixed manufacturing expense, while the balance is variable manufacturing expense.

Salaries expenses were 25 percent variable cost, and 75 percent fixed cost.

Administrative expenses include 20 percent variable cost.

1. make a contribution margin income statement.(12 marks)
2. what is the break-even quantity (to nearest unit)(4 marks)
3. Target sales in unit assuming a target profit of $80,000(4 marks)