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Case Hardware sells tiling grout among other products, their 2017 grout merchandise sales is as follows: Due to storage limitations, Case Hardware's annual storage and

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Case Hardware sells tiling grout among other products, their 2017 grout merchandise sales is as follows: Due to storage limitations, Case Hardware's annual storage and sales capacity is 700, 000 kg. Required A. Using the given information, prepare an Income Statement in the Contribution Margin format. B. Compute: a. Sales at break-even, kg and sales $s. b. Operating leverage. c. Sales required to achieve a $750, 000 net operating income. C. Prepare a revised Contribution Margin Income Statement assuming that Case Hardware's grout sales increases by 10% (based on volume). D. Suppose, in 2018, a customer offered to pay $6.00 per kg for a special order of 70, 000 kg, should Case Hardware accept or reject the offer. In reaching your answer, assume the company has already committed to sell 675, 000 kg of grout for the year. (Please explain your answer)

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