Michie Company's Management Accountant Prepared the Following Income Statement Relating

Michie Company's management accountant prepared the following income statement relating to its second year of operations using the absorption costing format: $\begin{array}{c}\hline \text {Michie Company } \\\hline \text {Income Statement (Absorption Costing)} \\\hline \text {Year Ended December 31, 2014} \\\begin{array}{|l|c|r|r|}\hline \text {Sales } & (50,000 \times \$ 20.00) & & \$ 100,000 \\\hline \text { Cost of goods sold } & & & \\\hline\text { Beginning inventory } & \left(10,000 \times \$ 10.00^{*}\right) & \$ 100,000 \\\hline \text { Variable and fixed manufacturing costs } & \left(45,000 \times \$ 10.00^{*}\right) & 450,000 \\\hline \text { Cost of goods available for sale } & (55,000 \times \$ 10.00) & 550,000 \\\hline \text { Less ending irventory } & (5,000 \times \$ 10.00) & 50,000 & \underline { 500,000} \\\hline \text { Gross margin at standard } & &&\$ 500,000\\\hline \text { Adjustment for volume variance } & (5,000 \times \$ 2.00^{*}) & &\underline { 10,000} \\\hline \text {Gross margin at actual } & & &\$ 490,000\\\hline \text {Less operating costs:} & &&\\\hline \text {Variable selling and administrative costs} & (50,000 \times \$ 2.00) &\$ \quad 100,000&\\\hline \text {Fixed selling and administrative costs } && \underline { 150,000 }& \underline { 250,000} \\\hline \text { Net income } & && \underline { \$ 240,000} \\\hline\end{array}\end{array}$ Breakeven point under absorption costing 20,000 units.
* Variable manufacturing costs of $8.00 plus fixed manufacturing costs of $2.00.
** The $2.00 fixed manufacturing cost per unit is based on budgeted production of 50,000 units.
Since actual production was only 45,000,an unfavorable volume variance of $10,000 occurred.
The company uses a standard costing system.The only variance that occurred during the period was the $10,000 unfavorable volume variance.
Required:
1)Prepare an income statement for Michie Company under variable costing.
2)Compute the breakeven point in units (total fixed costs ÷ unit contribution margin)under variable costing.
CHANGE NEEDS TO BE MADE TO TABLE
Change the "2014" to:
Year 2