Lester analysed the cost structure of MML company and found the following:

Manufacturing costs:

Variable cost : $15,000 per car

Fixed cost : $450,000,000 for 30,000 cars, or $15,000 per car

Selling and administrative expenses:

Variable cost: $5,000 per car

Fixed cost : $180,000,000

During the year end 30 June 2017, MML sold 28,000 Moveover Magnets for $40,000 each.

Using the information provided by Lester

a) Do an income statement for the year ended 30 June 2017 showing contribution margin.

b) What is the company's break-even point in cars? in sales dollars? Is this more or less than the

maximum size of the market for the Moveover Magnet?