Q Ltd. prepared a budget of sales and costs at various levels of activity for the year ending December 31, 2021, but due to a fire most of the accounting data has been destroyed. The remaining data are as follows:

Sales Levels (units) 18,000 $24,000

Material Cost $54,000 $72,000

Labour Cost 45,000 57,000

Overhead Cost 35,100 44,100

A. Prepare the income statement for Q Ltd. Assuming 24,000 units are sold. (5 mks)

B. Using Excel prepare a fully labelled conventional breakeven chart. (10mks)

The selling price is $8.75 per unit. Assume that fixed cost are the same within the range of 6,000 to 24,000 units.