Assume that you are part of the accounting team for Logan Manufacturing. The company currently expects to sell 689 units for total revenue of $20,150 each month. Logan Manufacturing estimates direct materials costs of $3,150, direct labor costs of $4,200, variable overhead costs of $2,100, and variable selling and administrative costs of $1,050. Fixed costs of $6,650 are also expected, which includes fixed overhead and selling and administrative costs. Using this information, complete the contribution margin income statement shown below.

Logan has been experiencing quality problems with a materials supplier. Changing suppliers will improve the quality of the product but will cause direct materials costs to increase by $1 per unit.	Logan will dispose of a machine in the factory. The depreciation on that equipment is $500 per month.
CM per unit:	CM per unit:
Break-even units:	Break-even units: