MagCo Inc. has provided you with the following year end full adsorption income statement:

Gross Profit $ $730,000$

Selling & Gen'l & Adim. Expenses:

Variable Selling xp$.,$$$100,000$

Fixed Selling Exp. $,$$$,500,000$

Total Selling Exp.

$$600,000$

Gen'l Adim Expenses:

Variable G&A Exp. $,$ $ $70,000$

Fixed G&A Exp $,$$$,600,000$

Total G&A Exp.

$$670,000$

Total Selling Exp. & Gen'l Adim Exp.

Profit $($Loss$)$

$[$$$1,270,000],[$$$(540,000)]$

Required:

$1$ Prepare and Contribution Margin $($Variable Cost$)$ income statement.

$2$ Calculate the Breakeven Point in $ using the Contribution Margin Equation method.

$3$ What would sales have to $b$ to generate $$300,000$ in profit?