e. If fixed costs drop to $310,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg E1 Reg E2 If fixed costs drop to $310,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. (Do not round Intermediate calculations. Round your final answers to the nearest dollar and round units up to the next whole unit.) Sales volume in units Sales volume in dollars 7,974 813,385 $ RE: Req E2> Prepare an income statement using the contribution margin format Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Rea 1 Reg E2 If fixed costs drop to $310,000, prepare an Income statement using the contribution margin format. (Do not round intermediate calculations. Round your final answers to nearest whole number.) SOLOMON COMPANY Income Statement Sales s Variable cost Contribution margin $ Fixed cost 813,385 191,385 622,000 310,000 Net Income S 312.000 f. If variable cost rises to $30 per unit, what level of sales is required to earn the desired profit? Express your answer in units a dollars. Prepare an income statement using the contribution margin format. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req F1 REF If variable cost rises to $30 per unit, prepare an income statement using the contribution margin format SOLOMON COMPANY Income Statement Sales Variable cost Contribution margin $ Fixed cost 1.160,640 435,240 725,400 413.400 Net income $ 312,000 ! Required information [The following information applies to the questions displayed below.] Solomon Company makes and sells products with variable costs of $24 each. Solomon incurs annual fixed costs of $413,400. The current sales price is $102. Note: The requirements of this question are interdependent. For example, the $312,000 desired profit introduced in Requirement also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. g. Assume that Solomon concludes that it can sell 13,000 units of product for $80 each. Recall that variable costs are $30 each and fixed costs are $310,000. Compute the margin of safety in units and dollars and as a percentage. (Do not round intermediate calculations. Round your answers to the nearest whole number. Round your percentage answer to nearest whole percentage For example, 0.1234 should be entered as 12%) Margin of safety in units Margin of safety in dollars Margin of safety
