Magnificent Modems, Incorporated 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,

Acquired $$750,000$ of cash from the owners.

Purchased $$270,000$ fo manufacturing equipment. The equipment has a $$30,000$ salvage value and a four$-$year useful life.

The company started and completed $5,000$ modems. Direct materials purchased and used amounted to $$40$ per unit.

The cost of manufacturing to $$25$ per unit.

The company paid $$50,000$ to rent the manufacturing facility.

Magnificent sold all $5,000$ units at a cash price of $$120$ per unit.

Paid $$39,000$ to purchase equiper unit sales commission. value and a three$-$year useful life.

the equipment was expected to have a $$3,000$ salvage

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 mara