Zebra Company manufactures custom-designed skins (covers) for gadgets. Variable costs are 10.80 per custom skin, the price is 16, and fixed costs are 66,560.

1.What is the contribution margin for one custom skin?

2.How many custom skins must Zebra Company sell to break even?

3.If Zebra Company sells 13,000 custom skins, what is the operating income?

Support your answer by preparing a variable-costing income statement.