The company is considering adding a model of hand-held car vacuum, which would be their first entry into offering this type of product. The manager assigned to evaluate this situation, Sara Denton, phones you to discuss various aspects of the venture. She does not understand much about cost behavior or cost-volume- profit analysis, but has the following information to provide to you. Based on current competition, the suggested selling price is $34 per unit. The variable costs and expenses per unit are $15.60 with expected total fixed costs associated with the product to be $125,120 per year. The marketing department feels confident that the company can sell at least 7,300 units per year, with their current sales forecast of 8,100 units per year. Of course, the marketing people can sometimes be overly optimistic, so Sara is asking for your perspective. You promise to run some numbers and email her with your results.

Create a spreadsheet with input cells containing the above information as well as an output section that: (a) provides forecasted profit within a contribution margin format income statement based on 8,100 units sold forecast (Be sure to use a heading and proper format so others using your report can understand what the amounts represent.) (b) provides a separate cell (c) provides a separate cell (d) provides a separate cell (e) provides a separate cell (f) provides a separate cell (g) provides a separate cell

detailing the contribution margin per unit (with label) detailing the contribution margin ratio (with label) detailing breakeven point in units (with label) detailing breakeven point in dollars (with label) detailing margin of safety in units (with label) detailing margin of safety in dollars (with label)