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Goofy Manufacturing Limited makes plastic pop down trays for use in airplanes. During 2019, the following costs were incurred: PERCENT PERCENT AMOUNT FIXED VARIABLE Direct

Goofy Manufacturing Limited makes plastic pop down trays for use in airplanes. During 2019, the following costs were incurred:

PERCENT PERCENT

AMOUNT FIXED VARIABLE

Direct material $1,300,000 100

Direct labor 910,000 100

Variable manufacturing overhead 270,000 100

Fixed manufacturing overhead 950,000 100

Selling costs 190,000 20 80

Administration costs 115,000 10 90

Sales for 2019 totaled $3,950,000 (25,000 trays) and there were no beginning and ending inventories.

Required:

ALL CALCULATIONS MUST BE SHOWN

  1. Prepare a contribution income statement for the year ended December 31, 2019.
  2. Determine the sales in dollars and units required to break even.
  3. Determine the sales in dollars and units required to make a $150,000 profit per year.

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