Pristine Microware produces and sells different types of solid state hard drives, each varying in quality and storage capacity. Below is some information about its latest products.

Silver $(500$ GB$)$

Price $ $50$

Variable Cost $ $22$

Fixed Cost $16,800$

Projected Volume $800$

Gold $(1$ TB$)$

Price $ $90$

Variable Cost $ $45$

Fixed Cost $22,500$

Projected Volume $700$

Platinum $(2$ TB$)$

Price $ $185$

Variable Cost $ $135$

Fixed Cost $18,000$

Projected Volume $400$

Required:

Create a Contribution Format Income Statement for each of the solid state hard drives and calculate Breakeven Point, Margin of Safety, and Degree of Operating Leverage using the statements.

Using the Degree of Operating Leverage only, fill in the information about sales volume increases.

Prove these numbers true by applying the change in volume to a new Contribution Format Income Statement.

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