QTR 1	QTR 2	QTR 3	QTR 4		Total
Units produced and sold	2,400	2,200	2,200	2,700		9,500
Sales @$100 per unit	240,000	220,000	220,000	270,000		950,000
Cost of goods sold	96,000	88,000	88,000	108,000		380,000
Gross margin	144,000	132,000	132,000	162,000		570,000
Operating expenses:
Salaries	45,000	45,000	45,000	45,000		180,000
Commissions	14,400	13,200	13,200	16,200		57,000
Delivery	10,200	9,600	9,600	11,100		40,500
Depreciation	7,500	7,500	7,500	7,500		30,000
Insurance	5,000	5,000	5,000	5,000		20,000
Taxes	4,000	4,000	4,000	4,000		16,000
Utilities	6,300	5,900	5,900	6,900		25,000
Office supplies	2,600	2,400	2,400	2,900		10,300
Other	6,000	5,600	5,600	6,600		23,800
Total operating expenses	101,000	98,200	98,200	105,200		402,600
Operating income	43,000	33,800	33,800	56,800		167,400
INSTRUCTIONS:
1. Convert the above income statement into
the contribution format.
2. Using the equations or formulas presented in the chapter compute:
a. Contribution margin per unit
b. Contribution margin ratio
c. Breakeven point in units
d. Breakeven point in sales dollars
e. Sales dollars necessary to achieve an operating income of $200,000.