Magnificent Modems, Inc., makes modem cards that are used in notebook computers. The company completed the following transactions during 2014. All purchases and sales were made with cash.

1.	Acquired $830,000 of cash from the owners.
2.	Purchased $310,000 of manufacturing equipment. The equipment has a $38,000 salvage value and a four-year useful life.
3.	The company started and completed 5,800 modems. Direct materials purchased and used amounted to $48 per unit.
4.	Direct labor costs amounted to $33 per unit.
5.	The cost of manufacturing supplies used amounted to $12 per unit.
6.	The company paid $58,000 to rent the manufacturing facility.
7.	Magnificent sold all 5,800 units at a cash price of $160 per unit.
8.	The sales staff was paid a $10.0 per - unit sales commission.
9.	Paid $47,000 to purchase equipment for administrative offices. The equipment was expected to have a $3,800 salvage value and a three-year useful life.
10.	Administrative expenses consisting of office rental and salaries amounted to $75,950.

Required

a.	Use the following partially completed form to prepare an income statement using the contribution margin format.
b.	Determine the break-even point in units and in dollars. (Round intermediate calculations and final answer to nearest whole number.)
c.	Assume that next years sales are budgeted to be the same as the current years sales. Determine the margin of safety expressed as a percentage. (Round your intermediate calculations to nearest whole number and final answer to 2 decimal places.(i.e., .2345 should be entered as 23.45))