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Comfy Chairs Ltd makes seats for use in commercial airplanes. During March 2022, the following costs were incurred: Amount Percentage Fixed Percentage Variable Direct Material

Comfy Chairs Ltd makes seats for use in commercial airplanes. During March 2022, the following costs were incurred:

Amount

Percentage Fixed

Percentage Variable

Direct Material

$10,000

100%

Direct Labour

$7,500

100%

Variable Manufacturing Overhead

$4,000

100%

Fixed Manufacturing Overhead

$8,200

100%

Selling Costs

$1,000

20%

80%

Administrative Costs

$1,500

10%

90%

Sales for March 2022 totaled $55,000 (1,100 seats) and there were no beginning and ending inventories.

Required:

ALL CALCULATIONS MUST BE SHOWN

1) Prepare a contribution income statement for the month ended March 31, 2022. Calculate total cost, per unit and percentage.

2) Determine the sales in dollars and units required to break even.

3) Determine the sales in dollars and units required to make a $34,200 profit per year.

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