Fanning Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $136 each. Fanning incurs $399,600 of fixed operating expenses annually.

Required

1. a1. Determine the sales volume in units and dollars required to attain a $64,000 profit.

2. a2. Prepare an income statement using the contribution margin format.

3. b. Fanning is considering implementing a quality improvement program. The program will require a $9 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $19,000 for advertising. Assuming that the improvement program will increase sales to a level that is 6,000 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format.

4. c. Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented

thank you

Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Reqc Determine the sales volume in units and dollars required to attain a $64,000 profit. Sales volume in units Sales volume in dollars Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B ReqC Prepare an income statement using the contribution margin format. FANNING CORPORATION Income Statement Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B ReqC Fanning is considering implementing a quality improvement program. The program will require a $9 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $19,000 for advertising. Assuming that the improvement program will increase sales to a level that is 6,000 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format. Show less FANNING CORPORATION Income Statement Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Reg B Reqc Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. (Do not round intermediate calculations. Round your answers to nearest whole number. Round "Margin of safety" answer to 1 decimal place. (.e., 0.234 should be entered as 23.4)) Break-even point in units Break-even point in sales dollars Margin of safety %