Rundle Corporation sells hammocks; variable costs are $72 each, and the hammocks are sold for $140 each. Rundle incurs $437,000 of fixed operating expenses annually. Required a1. Determine the sales volume in units and dollars required to attain a $73,000 profit. a2. Prepare an income statement using the contribution margin format. b. Rundle is considering implementing a quality improvement program. The program will require a $8 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $25,000 for advertising. Assuming that the improvement program will increase sales to a level that is 5,800 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format. c. Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Reg C Prepare an income statement using the contribution margin format. RUNDLE CORPORATION Income Statement Sales $ 1,050,000 Variable cost 540,000 Contribution margin s 437,000 X Fixed cost 437,000 0 % Net income S Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B Reqc Rundle is considering implementing a quality improvement program. The program will require a $8 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $25,000 for advertising. Assuming that the improvement program will increase sales to a level that is 5,800 units above the amount computed in Requirement a, prepare a budgeted income statement using the contribution margin format. Show less A RUNDLE CORPORATION Income Statement Answer is not complete. Complete this question by entering your answers in the tabs below. Req A1 Reg A2 ReqB ReqC Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. (Do not round intermediate calculations. Round your answers to nearest whole number. Round "Margin of safety" answer to 1 decimal place. i.e., 0.234 should be entered as 23.4)) Break-even point in units Break-even point in sales dollars Margin of safety %