Chapter 16, Problem 25E

1.

To determine

Draw up the contribution margin based income statement.

2.

To determine

Compute the break-even point using the conventional analysis.

3.

To determine

Compute the break-even point using the activity-based analysis.

4.

To determine

Calculate the break-even for given products and analyze if any difference is there if the computation method is different.

5.

To determine

Compute the break-even point, if the setup cost is reduced by $100 and maintenance hours is reduced to 1,000 hours.