Assume Segway produces and sells Segway helmets for kids. Further assume Segway offered these helmets at a special price of $$120$ each. Variable and fixed costs follow.

Suppose in June, Segway produced and sold $3,000$ helmets.

Required

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

b$.$ Calculate and explain the relevance of Segway's unit contribution margin and contribution margin ratio.

Contribution margin per unit

Contrubution margin ratio

For each helmet sold at $$,$Segway had $

more to cover fixed costs and contribute toward profit. Stated another way,

$16$ of the revenue was left to cover fixed costs and contribute toward profit. In the short$-$term, as long as there is capacity, Segway

$|$continue producing and selling the helmets.