Fill in the blanks in the monthly contribution margin income statement. If a blank line should not have anything in it, put an NA in the blank so I know you didnt just forget to put something in. Any blank lines will be marked wrong.

	Per Unit	# of units	Total	% of sales
Sales	$60	__________	$300,000	___________
__________________ expenses	__________	__________	_________________	55%
__________________ margin	__________	__________	_________________	___________
__________________ expenses	__________	__________	$108,000	___________
Net operating income	__________	__________	_________________	___________

Determine the monthly breakeven sales in dollars and units.

Determine the sales in dollars necessary to earn a monthly target profit of $54,000.

Go back to the original data. If the number of units sold increased by 10% and fixed expenses decreased by $8,000 per month, what would the companys new net operating income be?

Go back to the original data (that is, ignore the change in part d above). The marketing manager is considering an aggressive marketing strategy to gain market share. Hes considering reducing the selling price by $10 per unit and increasing fixed marketing expenses by $20,000 per month. If the company adopts this strategy, theyll sell a total of 7,750 units per month. By how much would the company need to reduce VC per unit to earn $27,000 of net income per month?

Assume the answer to part e above is that VC is reduced by $2 per unit from the original data. (That may or may not be the right answer.) Determine the indifference point between the original cost & revenue structure found in the given data and the new cost & revenue structure proposed by the marketing manager.