The Auto Supply manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs are as follows:

Variable Costs per card:			Fixed Costs per Month:
Manufacturing			Factory overhead	$7,000
Direct materials	$0.30		Selling and admin.	3,000
Direct labor	0.25
Factory overhead	0.25
	$0.80
Selling and admin.	0.15
Total	$0.95		Total	$10,000

a) Prepare a contribution income statement for the month of October.

b) Determine Auto Supplys monthly break-even point in units.

c) Determine the effect on monthly profit of a 1,000 unit increase in monthly sales.

d) If Auto Supply is subject to an income tax of 40 percent, determine the dollar sales volume required to earn a monthly after-tax profit of $15,000.