Ignore income taxes.Assume no beginning or ending inventories.

Panalon produces cast iron dutch ovens (a deep pot with a lid that can be used on a stovetop or in the oven). Their pots are sold at many local department stores. The cost of manufacturing and marketing their pots, at their normal factory volume of 5,000 pots per month, is shown in the table below. These pots sell for $50 each. Panalon is making a small profit, but would prefer to increase profitability.

Once I determine the break-even units and sales, how can I use a Contribution Margin Income Statement to verify that my calculated break-even volume results in Operating Income of Zero.

Per Unit Per Unit . Unit Mfg Costs: E Variable Materials 5 10.00 E Variable labels 5 9.00 E Variable Overhead S 5.00 E Fixed Overhead S 6.00 E Total Unit Mfg Costs: 5 30.00 E Variable Marketing Costs 5 4.00 E Fixed Marketing Costs 5 8. 00 E .----Fetal}!91:546.[tee95.995:5-----,,,,,,,,,,,,,S, ,,,,,,,,, 1, 2-,ng