Question 32 The following information describes a product expected to be produced and sold by Hadley Company: Selling Price = $80/unit Variable Costs = $32/unit Total fixed costs = $630,000 Required: (a) Calculate the contribution margin ratio (5 pts). (b) Calculate the break-even point in dollar sales (5 pts). You MUST show your work to receive ANY credit. Baker Company, a manufacturer of bathtubs, began operations on July 1 of this year. Its cost and sales information follow: $30 per unit $70 per unit $2,000,000 $8.000.000 Production Costs Direct Materials Direct Labor Overhead costs for the year: Variable Overhead Foved Overhead Non-production costs for the year Variable Selling and Admin Fixed Selling and Admin Production and Sales for the Year: Units Produced Units Sold Sales price per unit $525,000 $3,475,000 200,000 units 150,000 units $500 per unit Required: (1) Prepare an income statement for the company using absorption costing (10 points). In order to get points, you must show your work Use the following template: Sales Cost of Goods Sold Gross Margin Selling and Admin Expense Net Income (2) What is the company's net income under variable costing (5 pts) You MUST show your work to receive ANY credit