Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runnersWarm and Cozy. Current revenue, cost, and unit sales data for the two products appear below:

	Warm			Cozy
Selling price per pair	$	8.00		$	12.00
Variable expenses per pair	$	2.00		$	6.00
Number of pairs sold monthly		2,700	units		900	units

Fixed expenses are $3,240 per month.

Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole.

Compute the break-even point in dollars for the company as a whole and the margin of safety in both dollars and percentage of sales.

Compute the break-even point in units for the company as a whole and the margin of safety in both units (pairs of gloves) and percentage of sales.

Compute how many pairs of gloves must be sold overall if the company wants to make an after-tax target profit of $8,400 and the tax rate is 30%. Assume that the sales mix remains the same as shown above.