The following information is available for Dabney Company for 2000:

Sales revenue (at $\$ 20$ per unit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $\$ 151,200$

Fixed manufacturing costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000 Variable manufacturing costs (at $\$ 8$ per unit). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,480 Fixed selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 Variable selling expenses (at $\$ 2$ per unit). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15, 120 1. Prepare a contribution margin income statement.

2. Prepare a functional income statement.

3. Calculate the number of units sold.

4. Calculate the contribution margin per unit.

5. Calculate markup as a percentage of manufacturing costs 6. Interpretive Question: Why is a knowledge of the contribution margin more useful than a knowledge of the markup per unit when management has to make a decision about profitability?