Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM ratios, and the CM per unit for the two products are shown below:

	Product
	Basic			Deluxe			Total
Sales	$	600,000		$	400,000		$	1,000,000
Contribution margin ratio		60	%		35	%		?
Contribution margin per unit	$	9.00		$	11.50			?

The companys fixed expenses total $400,000 per month.

Required:

1. Prepare a contribution format income statement for the company as a whole.

2. Compute the overall break-even point in dollars for the company based on the current sales mix.

3. Compute the overall break-even point in units for the company based on the current sales mix. (Do not round intermediate calculations. Round your final answer to nearest whole number.)

4-a. If sales increase by $50,000 per month, by how much would you expect operating income to increase?

4-b. What are your assumptions? (Select all that apply.)

5-a. If sales increase by 5,000 units per month, by how much would you expect operating income to increase?

5-b. What are your assumptions? (Select all that apply.)