Consider the following data for the year ended December 31, 2019 for Jasmine & Aladdin Carpets Inc.

Per Unit Percent

Sales Price $500 100%

Less: Variable Costs $300 60%

Contribution Margin $200 40%

Fixed Costs $70,000

Currently sales are at 400 units.

ALL CALCULATIONS MUST BE SHOWN

Required:

A. Make a Contribution Format Income Statement for the year ended December 31, 2019. Include the Per Unit and Percentage totals in the income statement.

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

C. Determine the sales in dollars and sales in units required to make a $300,000 profit per year.