Shown below is an income statement in the traditional format for Charlotte Corp. that sells a singleproduct having a sales volume of 15,000 units.Cost formulas are also shown (for example, COGS includes fixed costs of $23,000 and variable costs of $3.20 per unit):

Sales ...............................................................$108,000

Cost of goods sold ($23,000 + $3.20 per unit) ........................... (71,000)

Gross profit..................................................................$37,000

Operating expenses:

Selling ($9,000 + $0.82 per unit) .......................................... (21,300)

Administrative ($12,800 +$0.07 per unit).................................(13,850)

Operating income ............................................................ $1,850

a.Create an income statement in the contribution margin format.

b.Calculate the contribution margin per unit and contribution margin ratio.

c.Calculate the firm's breakeven point in units.