David brown is thinking about opening a getwell card company in a shopping center. David found out that the rent will be $550 per month. Telephone company representative said that telephone service will cost about $95 per month. Electricity will cost about $200 per month. David will be able to buy business cards at $0.50 each, and he plans on selling them for $2 each. regardless of the number of business cards sold, salaries are expected to be $1,200 per month. Miscellaneous fixed cost will total $150 per month and miscellaneous variable cost will be $ 0.10 per get well card. David anticipates that he will be able to sell about 3,000 get well card per month. If David opens the store, his first month of business will be December 2004.

A. Prepare a projected contribution income statement for December 2004.
B. Determine how many cards he must sell to earn $40,000 per year. Is this feasible?
C. Compute the break-even sales volume and sales dollars for the card shop.
D. Determine how many cards must be sold per hour to break even if the store opens from 10:00 A.M to 9 P.M. each day, six days per week.