Saudia Newcastle Company is a merchandiser that provided the following information:

Amount

Number of units sold 35,000

Selling price per unit $40

Variable selling expense per unit $3

Variable administrative expense per unit $1

Total fixed selling expense $45,000

Total fixed administrative expense $28,000

Beginning merchandise inventory $21,000

Ending merchandise inventory $35,000

Merchandise purchases $805,000

Required:

A. Prepare a traditional income statement for Saudia Newcastle.

B. Prepare a contribution margin income statement for Saudia Newcastle.

C. Calculate the contribution margin per unit for the company.

D. Calculate the breakeven point in units for the company.