Instructions Cost-Volume-Profit Equation, Basic Concepts, Solving for Unknowns Elvin Company produces hand cream in plastic jars. Each jar sells for $5.60. The variable cost for each jar (materials, labor, and overhead) totals $3.92. The total fixed cost is $64,200. During the most recent year, 70,000 jars were sold. Required: 1. What is the break-even point in units for Elvin? What is the margin of safety in units for the most recent year? 2. Prepare an income statement for Elvin's most recent year. 3. How many units must be sold for Elvin to earn a profit of $62,000? 4. What is the level of sales dollars needed for Elvin to earn operating income of 10% of sales? Amount Descriptions Refer to the list below for the exact wording of text items within your income statement. Amount Descriptions Operating Income Operating loss Sales revenue Total contribution margin Total fixed cost Total variable cost 1(a) What is the break-even point in units for Elvin? The break-even point in units is 1(b) What is the margin of safety in units for the most recent year? The margin of safety in units is Contribution Margin Income Statement 2. Prepare an income statement for Elvin's most recent year. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. If there is an operating loss, enter the amount as a negative number using a minus sign. 1 2 5 Elvin Company Income Statement For the most recent year 2. Prepare an income statement for Elvin's most recent year. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. If there is an operating loss, enter the amount as a negative number using a minus sign. 1 2 3 4 S Sales Units and Dollars Elvin Company Income Statement For the most recent year 3. How many units must be sold for Elvin to earn a profit of $62,000? 4. What is the level of sales dollars needed for Elvin to earn operating income of 10% of sales?