Page 2 of 2 ZOOM + Pisces, Inc. is in the business of making and selling trampolines and prepares its financial statements on a monthly basis. Rick O'Shay is the CEO and President of the company. Pisces has been in business for three months and has recorded the following information for those three months: April 2020 May 2020 June 2020 # of units sold 1,200 1,120 1,260 Sales Revenue $384,000 $358,400 $403,200 Advertising Expense $4,000 $4,000 $4.000 Cost of Goods Sold $246,000 $232,400 $256,200 Depreciation Expense $13,680 $13,680 $13,680 Insurance Expense $3,000 $3,000 $3,000 Rent Expense $15.000 $15,000 $15,000 Salaries & Wages Expense $60,00 $57,600 $61,80 Supplies Expense $19,200 $17,920 $20,160 Utilities Expense $11,600 $10,960 $12,080 Net Income $11,520 $3,840 $17,280 Required: Use the preceding information to do the following: 1) Prepare in good form a contribution margin income statement for Pisces at the break-even point. Before you can do this, you will first need to compute the break-even point for Pisces (both in terms of number of trampolines and in sales dollars). You will need to classify each of the expenses listed in the table above as either fixed, variable, or mixed. You will then need to use the high-low method to determine how much of the mixed costs are fixed and how much are variable. 2) Compute the amount of sales that must be achieved in order to reach a target profit of $24,000 per month. Then, prepare in good form a contribution margin income statement for a month at that level of sales 3) Prepare in good form a contribution margin income statement for the month of July. Pisces has done some marketing analysis and projects sales of 1,230 trampolines in July 4) Calculate the degree of operating leverage for the company using July's projected operating results. (Round to the nearest one-tenth; i.e. 3.4) Then, use this number to predict what Pisces net income would be if the company were to increase sales by 10% over July's results and if the company were to experience a 10% decrease from July's results. 5) Finally, calculate the margin of safety (computed as a percentage) for the company using July's projected sales. Prepare a short explanation (5 sentences or less) explaining what this number means for the company. When preparing the three required income statements listed above, include a column for the total dollar amounts and a column for the per unit amounts. Round your per unit calculations to the nearest penny (i.e. $3.12). List all the different types of variable costs and fixed costs with totals for each. Use the examples posted on I-Learn to help with the format on your financial statements. For requirements 4 and 5, add a page to the back of your income statements with the required calculations and the short explanation