Dester Manufacturing Company makes a product that it sells for \($50\) per unit. The company incurs variable manufacturing costs of \($20\) per unit. Variable selling expenses are \($5\) per unit, annual fixed manufacturing costs are \($187,000\) , and fixed selling and administrative costs are \($113,000\) per year.

Required:

a. Determine the break-even point in units and dollars.

b. Confirm your results by preparing a contribution margin income statement for the break-even sales volume.