The Heidi Company produces a single product and has total costs ranging from $321,875 (at 20,000 units) to $966,875 (at 80,000 units). Sales volume in 2010 was 32,000, and operating income was $45,125. Heidi's product is highly specialized; therefore, no units are kept in inventory.

Required: (a) Determine the cost equation for Heidi's costs. (b) Prepare a contribution margin income statement for 2010 including separate columns for total dollars, per unit dollars, and percentages. (c) Determine the break-even point (in units and in dollars).