Finch Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash. 1. Acquired $810,000 of cash from the owners. 2. Purchased $300,000 of manufacturing equipment. The equipment has a $36,000 salvage value and a 3. The company started and completed 5,600 modems. Direct materials purchased and used amounted to $46 per unit. 4. Direct labor costs amounted to $31 per unit. 5. The cost of manufacturing supplies used amounted to $18 per unit. 6. The company paid $56,000 to rent the manufacturing facility. 7. Finch sold all 5,600 units at a cash price of $150 per unit. 8. The sales staff was paid a $9.00 per unit sales commission. 9. Paid $45,000 to purchase equipment for administrative offices. The equipment was expected to have a $3,600 salvage value and a three-year useful life. 10. Administrative expenses consisting of office rental and salaries amounted to $99,100 four-year useful life. Required a. Use the following partially completed form to prepare an income statement using the contribution margin format b. Determine the break-even point in units and in dollars c. Assume that next year's sales are budgeted to be the same as the current year's sales. Determine the margin of safety expressed as a percentage. Complete this question by entering your answers in the tabs below. Required A Required B Required C Use the following partially completed form to prepare an income statement using the contribution margin format. FINCH MODEMS, INC. Required A Required B Required C Use the following partially completed form to prepare an income statement using the contribution margin format. FINCH MODEMS, INC. Income Statement For the Year Ended December 31, Year 1 Sales revenue $ 840,000 Variable costs Total variable costs Contribution margin 302,400 Fixed costs Total fixed costs Net income 67,500 1 of 2 Prev Novt Required a. Use the following partially completed form to prepare an income statement using the contribution margin format b. Determine the break-even point in units and in dollars. c. Assume that next year's sales are budgeted to be the same as the current year's sales. Determine the margin of safety expressed as a percentage Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the break-even point in units and in dollars. (Round "Contribution margin per unit" to 2 decimal places. Round intermediate calculations and final answers to nearest whole number.) Break even point in units Break-even point in dollars Required a. Use the following partially completed form to prepare an income statement using the contribution margin format b. Determine the break-even point in units and in doillars c. Assume that next year's sales are budgeted to be the same as the current year's sales. Determine the margin of safety expressed as a percentage Complete this question by entering your answers in the tabs below Required C Required A Required B Assume that next year's sales are budgeted to be the same as the current year's sales. Determine the margin of safety expressed as a percentage. (Round intermediate calculations to nearest whole number and final answer to 2 decimal places (Le 2345 should be entered as 23.45) Margin of satety expressed Required B Fanning Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The following estimates are based on a production and sales volume of 1,500 pagers. Unit-level manufacturing costs are expected to be $25. Sales commissions will be established at $1.50 per unit. The current facility level costs, including depreciation on manufacturing equipment ($65,000), rent on the manufacturing facility ($55,000), depreciation on the administrative equipment ($13,500), and other fixed administrative expenses ($74,450), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (e., 5,500 modems and 1,500 pagers). Required a. Determine the per-unit cost of making and selling 1,500 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Assuming the pagers could be sold at a price of $39 each, should Fanning make the pagers? Cost per unit a Should Fanning make the pagers? b