Naylor Manufacturing Inc. sold 8,000 units and recorded sales of $400,000 for the first month of 2016. In making the sales, the company incurred the following costs and expenses.

Instructions
(a) Prepare a CVP income statement for the month ended January 31, 2016.
(b) Calculate the contribution margin per unit.
(c) Calculate the contribution margin ratio.

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VariableFixed Cost of goods sold Selling expenses Administrative expenses $184,000 40,000 16,000 $70,000 30,000 40,000