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Warren/Reeve/Duchac - Bundle: Financial & Managerial Accounting, Loose-Leaf Version, 14th + LMS Integrated for CengageNow v2,

Use the information provided in Problem 19-6B on page 991 of the text andmanually(i.e. no computer) both an absorption income statement and a variable income statement (with correct titles) and underlines).Please listevery individualexpense item.Also, determine: (1) the break-even in units and dollars, (2) explain what the calculated contribution margin means for this company, (3) what is the expected margin of safety in dollars and as a percentage of sales and explain what these numbers mean for the company.

Since this is to be done manually (i.e. no computer) neatness is a must and points will be deducted for form and neatness.Use themultiple-step income statementform on page 245 of our text.