You have just written a book on Human Resource Information Systems.You plan to sell 1,000 books in the coming year at $30.00 per book.Unit variable costs are $4.50 (includes direct materials, direct labour, variable overhead, and variable selling and administrative expenses).Total fixed costs are $12,500.

Required:

1.Calculate the number of books to sell to earn an operating income of $ 12,000.

2.Check your answer by preparing a contribution margin income statement based on the breakeven number of units.