Nm 11 Income Statement 12 For the Year ended October 31, 2021 13 14 Sales 26,000,000 15 Cost of goods sold: 16 Variable 11,700,000 17 Fixed 2,870,000 14,570,000 18 19 20 Gross margin 11,430,000 21 22 Selling & marketing expenses: 23 Commissions 4,680,000 24 Fixed costs 3,420,000 8,100,000 00 25 26 27 Operating income 3,330,000 28 Notes: The company hires agents to sell the 29 products. The agents are paid a commission of 18% 30 31 Required: 1. Redo the above financial statement in 32 contribution format, in good form. 33 2. Calculate the break-even point in sales dollars. Hint: Use the formula: B/E in dollars = Total Fixed Costs / CM% 3. The company applies overhead production based on machine-hours. At the beginning of the year, it was estimated that the company would incur $192,000 in overhead costs, 65,000 in labour-hours, and 80,000 in machine-hours. Assume that during the year, the company worked 63,000 in labour-hours and 75,000 in machine-hours. Please compute the 34 amount of Overhead applied to production, showing 35 4. Prepare the journal entry for the overhead application 36 figure computed in requirement 3. above