The Kodiak Corporation produces a waterproof digital camera with the following results budgeted for production and sales of 10,000 units per month: Sales revenue (10,000 units) $2,200,000 Costs of goods sold: Variable manufacturing costs $970,000 Fixed manufacturing overhead 750,000 Total cost of goods sold 1,720,000 Gross Margin 480,000 Operating expenses: Sales commissions (5% of sales revenue) 110,000 Salaries (fixed) 150,000 Other (fixed) expenses 50,000 Total operating expenses 310,000 Net operating income (loss) $170,000

(a) Reformat the budgeted income statement using the contribution margin format.

b)What is number of UNITS required to be sold by Kodiak in order to break-even?