Martram Corporation has completed the development of a new line of wrist bracelets. Sales are expected to be 30,000 units in year one and 50,000 in year two. Prepare a two-year operating statement. Prepared variable contribution, and breakeven volume analysis.

Retail Selling Price $30

Retail Margin 50%

Material cost/unit $3.75

Labour cost/unit $1.25

Packaging cost/unit $0.50

Salesforce salaries and expenses $150,000

Manufacturing overhead $ 76,000

Administrative expenses $ 70,000

Sales Promotion (year one only) $ 40,000