Connelly Inc , a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years Because her business has grown, Jan DeJaney, the president, believes she needs an aggressive advertising campaign next year to maintain the companys growth To prepare for the growth, the accountant prepared the following data for the current year Variable costs per ice cream maker Direct labor $ 13 50 Direct materials 14 50 Variable overhead 6 00 Total variable costs $ 34 00 Fixed costs Manufacturing $ 82,500 Selling 42,000 Administrative 356,000 Total fixed costs $ 480,500 Selling price per unit $ 67 00 Expected sales (units) 30,000 Required 4 b Prepare a contribution income statement at the new breakeven point Reg 1 Reg 2 Reg 3 Reg 4A Reg 4B Reg Prepare a contribution income statement at the new breakeven point CONNELLY, INC Contribution Income Statement Sales revenue Less Variable costs Contribution margin Less Fixed costs Original amount $ $ 480 500 Incremental amount 200,000 3 $ 680,500 $ $ Operating profit (880 500)

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Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business

Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan DeJaney, the president, believes she needs an aggressive advertising campaign next year to maintain the companys growth. To prepare for the growth, the accountant prepared the following data for the current year:


Variable costs per ice cream maker
Direct labor	$	13.50
Direct materials		14.50
Variable overhead		6.00
Total variable costs	$	34.00
Fixed costs
Manufacturing	$	82,500
Selling		42,000
Administrative		356,000
Total fixed costs	$	480,500
Selling price per unit	$	67.00
Expected sales (units)		30,000

Required:

4-b. Prepare a contribution income statement at the new breakeven point.

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Reg 1 Reg 2 Reg 3 Reg 4A Reg 4B Reg Prepare a contribution income statement at the new breakeven point. CONNELLY, INC. Contribution Income Statement Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Original amount $ $ 480.500 Incremental amount 200,000 3 $ 680,500 $ $ Operating profit (880.500)