Shown below is an income statement in the traditional format for Charlotte Corp. that sells a single product 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 break‑even point in units