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Please help and explain how you got what goes into the income statement Case: The Dial Company specializes in producing a set of wood patio

Please help and explain how you got what goes into the income statement
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Case: The Dial Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 10,000 sets per year. Annual cost data at full capacity follow: The patio sets are normally sold for $500 per set. Dial can increase capacity by 500 units to 10,500 units (from previous capacity of 10,000 units) but must pay $25,000 to do so. Annual cost data for the production of 10,000 sets are classified as follows: For the following questions, please use the information on pages 1 and 2 to help support your decisions. Please document your answer in a clear, concise way and reference any numbers that were used to make your decision. Each question is independent and refers to the original data unless specified otherwise. For each question, please use up to 100 words. Each question is worth 5 points for a total of 20 points. 1) Please prepare a contribution margin income statement at normal capacity and label the income statement as Figure 1. Please show the following format and show columns for totals and per unit. Assume that sales are priced at the normal price. 2) Do total fixed costs change if units change from 8,000 to 9,000 units? Why or why not? Please mention the concept of relevant range in your answer. What is the variable cost per unit and what are the total variable costs for 10,000 units? Please explain your calculations and reference to the chart in Figure 1. 3) If demand for 2023 is instead 10,500 units should the company pay to increase their capacity? Why? Please explain your calculations and reference to the chart in Figure 1. Assume units are sold at the normal price. Please mention the concept of incremental profits. Hint: If you expand capacity, you will have to pay additional fixed costs of $25,000. Remember that fixed costs are fixed within the relevant range. If you expand capacity then you are outside this range. If you expand capacity then you can make revenue on 500 additional units at the normal price and would pay variable costs on 500 additional units. Please consider the incremental profit or loss of expanding capacity. The incremental profit is the increase in revenues minus the increase in costs of adding 500 more units. If the incremental profit of expanding capacity is positive then you should do so

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