Hampshire Company Variable Costing Income Statement Units $ $ Variable Cost of Goods Sold Beginning Inventory Direct Materials Manufacturing Overhead Total Variable Costs The information below represents the beginning and ending inventory amounts along with the production and sales for the month in umbrella units. Beginning Inventory: 0 Umbrellas Production: 80,000 Umbrellas Sales: 60,000 Umbrellas Ending Inventory: 20,000 Umbrellas The information below represents the beginning and ending inventory amounts along with the production and sales for the month in umbrella units. The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed costs for administration of $79,525. The per-unit costs of each umbrella are as follows: Direct Materials: $3.00 Direct Labor: $1.50 Variable Manufacturing Overhead: $0.40 Variable Selling Expenses: $1.10 Using the information above, perform a cost-volume-profit (CVP) analysis by completing the steps below. All CVP calculations should be completed in the Hampshire Company Spreadsheet. Note: The CVP analysis satisfies Part A of Section I. 1. Compute net income before tax. 2. Compute the unit contribution margin in dollars and the contribution margin ratio for one umbrella. 3. Calculate the break-even point in units and dollars of revenue. Note: This is a required part of the CVP analysis and satisfies Part C of Section I. 4. Calculate the margin of safety: a. In units b. In sales dollars c. As a percentage 5. Calculate the degree of operating leverage.

My calculations are off for some reason. They are in my folder. Not sure where I went wrong. We are on the variable income statement.