The BC 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

Direct materials

$0.30

Direct labor

0.25

Factory overhead

0.25

0.80

Factory overhead

$4,000

Selling and admin.

0.15

Selling and admin.

3,000

Total

$0.95

Total

$7,000

BC Supply produced and sold 10,000 cards during October. There were no beginning or ending inventories.

Required:

(a) Create a contribution income statement for October.

(b) Determine BC Supply's monthly break-even point in units.

(c) Determine the effect on the monthly profit of a 1,700 unit increase in monthly sales.

(d) If BC Supply is subject to an income tax of 34 percent, determine the dollar sales volume required to earn a monthly after-tax profit of $22,000.