c. What level of sales dollars do we need to make a profit of $15,300? CM Ratio + $22,600 + 15,300 Fixed Expenses+ Desired Profit CM Ratio Total Percentage Proof: Sales Variable Expenses Contribution Margin Fixed Expenses Operating income Per Unit $40 24 4 51 10 11 1) 34 Toy Store Contribution Income Statement For the month ended December 31, Total Sales $200,000 - Variable expenses Cost of Goods sold $120,000 Sales Commissions $20,000 Delivery of necklaces $25,000 Offsite billing 5000 Total variable expenses $170,000 Contribution margin $30,000 Fixed expenses Store rent $8,000 Sales salaries $3,000 Advertising $2,000 Depreciation on laptops $600 Depreciation on office equip $800 Offsite billing $1,000 Administrative salaries $6,000 Employee benefits $1,200 Total fixed expenses $22,600 - Net operating income (loss) $7,400 6 18 10 17 15 20 21 22 22