Vaughn Corporation sells hammocks; variable costs are $75 cach, and the hammocks are sold for $125 each Vaughn incurs $240,000 of fixed operating expenses annually Required a1. Determine the sales volume in units and dollars required to attain a $60,000 profit a2. Prepare an income statement using the contribution margin format b. Vaughn is considering implementing a quality improvement program. The program will require a $10 increase in the variable cost per unit. To inform its customers of the quality Improvements, the company plans to spend an additional $10,000 for advertising. Assuming that the improvement program will increase sales to a level that is 4,000 units above the amount computed in Requirement a prepare a budgeted income statement using the contribution margin format. c. Determine the new break-even point in units and sales dolors as well as the margin of safety percentage, assuming that the quality improvement program is implemented Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Regc Determine the sales volume in units and dollars required to attain a $60,000 profit. Sales volume in units Sales volume in dollars Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Reqc Prepare an income statement using the contribution margin format. VAUGHN CORPORATION Income Statement Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Reg C Vaughn is considering implementing quality improvement program. The program will require cost per unit. To inform its customers of the quality improvements, the company plans to spend advertising. Assuming that the improvement program will increase sales to a level that is 4,000 computed in Requirement a, prepare a budgeted income statement using the contribution marg VAUGHN CORPORATION Income Statement