Magnificent Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1 . All purchases and sales were made with cash. 1. Required $750,000 of cash from the owners. 2. Purchased $270,000 of manufacturing equipment. The equipnent has a $30,000 salvage value and a four-year useful 11fe. 3. The company started and completed 5,000 modens. Direct materials purehased and used amounted to \$\$O per unit. 4. Direct labor costs amounted to $25 per unit. 5. The cost of manufacturing supplies used amounted to \$4 per unit. 6. The company paid $50,000 to rent the manufacturing facility. 7. Magnificent sold al1 5,000 units at a cash priee of $120 per unit. 8. The sales staff wan paid a $6 per unit sales conmission. 9. Paid $39,000 to purchase equipment for administrative offices. The equipment was expected to have a $3,000 salvage value and a three-year useful 11fe. 0. Administrative expenses consisting of of fice rental and salaries amounted to $71,950. 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. c. Assume that next year's sales are budgeted to be the same as the current year's sales. Determine the margin of safety expressed as a percentage. Complete this question by entering your answers in the tabs below. Assume that next year's sales are budgeted to be the same as the current year's sales. Determine the margin of safety expressed as a percentage. (Do not round intermediate calculations. Round your answer to 1 decimal place. ( 1.0.,0.234 should be entered as 23.4)) Magnificent Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1 . All purchases and sales were made with cash. 1. Acquired $750,000 of cash from the owners. 2. Purchased $270,000 of manufacturing equipment. The equipent has a $30,000 salvage value and a four-year useful 1ife. 3. The company started and conpleted 5,000 nodems. Direct material purchased and used amounted to $40 per unit. 4. Direct labor costs amounted to $25 per unit. 5. The cost of manufacturing supplies used amounted to $4 per unit. 6. The company paid $50,000 to rent the manufacturing facility. 7. Magnificent sold al1 5,000 units at a cash price of $120 per unit. 8. The sales staff was paid a $6 per unit sales cornission. 9. Paid $39,000 to purchase equipment for administrative offices. The equipment was expected to have a $3,000 salvage value and a three-year useful if ife. 0 . Rdministrative expenses consisting of office rental and salaries amounted to $71,950. 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. c. Assume that next year's sales are budgeted to be the same as the current year's sales. Determine the margin of safety expressed as a percentage. Complete this question by entering your answers in the tabs below. Determine the break-even point in units and in dollars. (Do not round intermediate-calculations.) Magnificent Modems, Inc. makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash. 1. Acquired $750,000 of cash from the owners. 2. Purchased $270,000 of manufacturing equipment. The equipment has a $30,000 salvage value and a tour-year useful 1 ife. 3. The company started and completed 5,000 modems. Direct materiale purchaned and used amounted to $40 per unit. 4. Direct labor costs amounted to $25 per unit. 5. The cont of manufacturing supplien used amounted to $4 per unit. 6. The coepany paid $50,000 to rent the nanufacturing facility. 7. Magnificent sold all 5,000 units at a cash price of $120 per unit. 8. The sales staft was paid a $6 per unit sales commission. 9. Paid $39,000 to purchase oquipment for adninistrative offices. The equiphent vas expected to have a $3,000 salvage value and a three-year useful life. 0 . Administrative expenses consisting of office rental and salaries amounted to $71,950. Required a. Use the following partially completed form to prepare an income statement using the contribution margin format. b. Determine the break-oven point in units and in dollars. c. Assume that next year's sales are budgeted to be the same as the current year's sales. Determine the margin of safety expressed as a percentage. Complete this question by entering your answers in the tabs below. Use the following partially completed form to prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Use the following partially completed form to prepare an income statement using the contribution margin format