Stuart Company makes and sells products with variable costs of $24 each. Stuart incurs annual fixed costs of $420,280. The current sales price is $103.

Note: The requirements of this question are interdependent. For example, the $316,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements.

rev: 02_12_2020_QC_CS-199849, 07_24_2020_QC_CS-220166

e. If fixed costs drop to $312,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format.