Question 2: Use the income statement shown below to answer the following questions. [30 points) a) If known $ 8,000 of the general overhead is considered variable overhead, what are the contribution margin and the contribution margin ratio? b) Determine the break-even volume of work for the company with a fixed overhead of $47,827, the contribution margin ratio from (a), and a required level of profit of $21,000. c) If the company thinks the result of (b) in terms of break-even volume of work exceeds the volume of work that the company can perform, what are the possible ways for the company to meet the profit requirement ($21,000) for the next year? d) Determine the profit and overhead markup. WEST MOUNTAIN CONSTRUCTION INCOME STATEMENT REVENUE 789 839 CONSTRUCTION COSTS Materials Labor Subcontract Equipment 92.214 199.690 401,948 20.833 Total Construction Costs 716.602 3,773 EQUIPMENT COSTS Rent and Lane Payments Depreciation Repairs and Mainte Fuel and Lubrication Taxes, Licenses and Insurance Equipment Cow Charged to Jobs Total Equipment Costs 20833 GROSS PROFIT OVERHEAD 53.827 NET PROFIT FROM OPERATIONS 19.975 1.162 OTHER INCOME AND EXPENSE PROFIT BEFORE TAX 21.137 INCOME TAX 3,921 PROFIT AFTER TAX 17.216