Casper Karts manufactures a three-wheeled shopping cart that sells for $90. Variable cost per shopping cart is $58.5. Annual fixed cost is $985,000. Casper Kart sold 95,000 shopping carts in this year.

1. Please use the format of a contribution margin income statement to calculate the contribution margin (in dollars), unit contribution, and contribution margin ratio for Casper Karts.

Total Per Unit Percentage

Sales (xxx units)

Less: Variable costs

Contribution margin

Less: Fixed costs

Net income

2. What will be the break-even point in units and in dollars if we assume that Casper Karts sells this product (the three-wheeled shopping cart) only?

3. How many units must the company sell to earn a pre-tax income of $1,500,000?

4. If the companys tax rate is 35 percent, how many units must be sold to earn an after-tax profit of $800,000?

5. What is the companys margin of safety based on the sales of 95,000 shopping carts? 6. Assume that there is no change in fixed costs. What will be the expected net income if this company has the sales revenue of $6,000,000?

Please show work :)