Shoes by the Pound, Inc. Income Statement (traditional format) For the Year Ending December 31, 202X Sales ($50 per unit) $1,200,000 Less: Cost of goods sold (550.000) Gross margin $650,000 Less operating expenses Line supervisor salaries $180,000 Property taxes, factory 60,000 Product packaging 350,000 (590,000) Net Operating Income $60.000 Hint: Rearranging the income statement into contribution format may be helpful as scratchwork Questions: 1. What is the contribution margin/unit? 2. What is the contribution margin ratio? 3. What is the breakeven point in units? If necessary, round up to the nearest whole unit. 4. What is the breakeven point in dollars? 5. What is the meaning of breakeven point? Be concise. 6. How many units would the company need to sell to earn $90,000 in net operating income? If necessary, round up to the nearest whole unit