Classic Drum Company manufactures drum sets that sell for $1,000 per unit and the variale cost per unit is $500. The company's annual fixed cost are $200,000. Using the formulas from the textbook or formulas given to you, use this information to compute:

1. Contribution Margin

2. Contribution Margin Ratio

3. Break-even point in units

Assuming the break even point in units is 400 units, prepare a Contribution Margin Income Statement for Classic Drum Company at the companies break-even point.

Do not put a negative or minus sign for variable cost or fixed cost.

Sales
-Variable Cost
Contribution Margin
-Fixed Cost
Operating Income