Pharoah Industries developed the following information for the product it sells: Sales price $50 per unit Variable cost of goods sold $28.00 per unit Fixed cost of goods sold $656,000 Variable selling expense 10% of sales price Variable administrative expense $2.00 per unit Fixed selling expense $406,000 Fixed administrative expense $306,000 For the year ended December 31, 2022, Pharoah produced and sold 106,000 units of product. 1.Prepare a CVP income statement using the contribution margin format for Taveras Industries for 2016.

2. What was the company's break-even point in units in 2016? Use the contribution margin technique.

3. What was the company's margin of safety in dollars in 2016?

PHAROAH INDUSTRIES Income Statement For the Year Ended December 31, 2022 Sales $ Variable expenses Cost of goods sold $ Selling expenses Administrative expenses Total variable expenses Contribution margin Fixed expenses Cost of goods sold Selling expenses Administrative expenses Total fixed expenses Net income / (Loss) Save for Later Last saved 1 second ago. Attempts: 0 of 1 used Submit Answer Saved work will be auto-submitted on the due date. Auto