"Your roommate asks for your help on the subsequent questions about CVP analysis formulas.
a. How will the mathematical equation for break-even sales show both sales units and sales dollars?
b. How do formulas differ for contribution margin per unit and contribution margin ratio?
c. How will contribution margin be used to evaluate break-even sales in units and in dollars?"
Instructions:
Prepare a memo to your roommate stating the relevant formulas and answering each question.