Berry Company produces a single product. The projected income statement for the coming year is as follows:

Sales (18,000 units @ $60) ........$1,080,000

Less: Variable costs ............594,000

Contribution margin ...........$ 486,000

Less: Fixed costs .............540,000

Operating income .............$ (54,000)

Required:

1. Compute the unit Contribution margin and the units that must be sold to break even.

2. Suppose 30,000 units are sold above break even. What is the operating income?

3. Compute the Contribution margin ratio and the break-even point in dollars. Suppose that revenues are $200,000 more than expected for the coming year. What would the total operating income be?