Weldons Concrete (WC) wishes to present its operating results for the year ended December 31, 2016, in the form of a contribution margin income statement. Weldons Concrete produces a single product and has a relevant range between 20,000 and 80,000 units. Total production costs range from $321,875 to $966,875 at the low and high ends of the relevant range, respectively. Sales volume in 2016 was 32,000 units, and net income was $45,125. Weldons Concrete does not maintain any beginning or ending Work-In-Progress or Finished Goods inventories.

Questions:

1. Prepare a contribution margin income statement for the year ended December 31, 2016. Include columns for total dollars, per-unit dollars, and percentages of sales.

2. Draw a rough Cost-Volume-Profit (CVP) graph for this situation. Draw (include) and label all relevant axes, points and lines, and the break-even point.