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Picnic Time produces a picnic basket that is sold for $100 per unit. Assume the...

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Accounting

Picnic Time produces a picnic basket that is sold for $100 per unit. Assume the company produced and sold 4,000 baskets during July. There were no beginning or ending inventories. Variable and fixed costs follow.
REQUIRED
a. Prepare a contribution income statement for July.
b. Determine the break-even point in sales dollars.
Note: Do not round intermediate calculations
Note: Round up to the nearest dollar, enter $80 for $79.2
c. Suppose the cost of labor is expected to increase next year. How will this affect the
break-even point?
Break-even point will
d. Determine July's margin of safety in sales dollars.
e. What dollar sales volume is currently required to obtain a before-tax profit of $120,000?
Note: Do not round intermediate calculations
Note: Round up to the nearest dollar, enter $80 for $79.2
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