Kindness Inc. operates in the emotions industry.It found a market need for happiness and opened its doors in 1972. This was after most younger Americans realized that other things existed.Kindness Inc., sold and still has one main product, but is looking into expending its product offerings within the next ten years.Its current source of happiness is selling HappyBits.HappyBits provide "1 smile per second for up to 4 hours" (based on current levels of vitamin C). These are not regulated by the FDA because they are not internally ingested.

After operating the last two years with losses, Kindness Inc is investigating new ways to increase profit and level the fluctuations in Quarantine vs. regular sales periods.These fluctuations are mainly based on the need and desire to make others happy during certain seasons.

You have recently joined the organization (about 6 months ago) as a strategic business professional. Kindness Company's contribution format income statement for January is given below:

Contribution Format Income Statement For the month of January Sales (80,000 units) $1,500,000 Variable expenses 900,000 Contribution margin 600,000 Fixed expenses 400,000 Net operating income S 200.000