Total fixed overhead is $52,000 per year. Variable selling expenses are $1.60 per unit sold; fixed selling and administrative expenses are $37,950.
Required
1. Calculate the contribution margin ratio
2. Calculate the break-even revenue.
3. Calculate the revenue needed to earn $18,000.
4. Calculate the break-even units, rounded to the nearest unit.
5. Calculate the units needed to earn $18,000, rounded to the nearest unit.