Creighton Corporation is a one product company and has provided the following information related to their product.

	Sales price per unit	$60
	Units produced and sold	2,000
Manufacturing cost:
	Variable manufacturing cost per unit	$20
	Fixed manufacturing cost per unit	12
Selling and Administrative cost:
	Variable S&A cost per unit	10
	Fixed S&A cost per unit	6

REQUIRED

1. Prepare a Contribution format income statement for Creighton Corporation.
2. Calculate the break-even point in dollar sales.
3. How many units does Creighton have to sell to achieve a target profit of $50,000.

1. Calculate the margin of safety percentage.
2. Use the degree of operating leverage to calculate the estimated percent increase in net operating income given a 15% increase in sales.