Prime BBQ Ltd sells a single product, a gas barbecue. The barbecue sells for \($960\) per unit. Annual fixed costs are \($1\) 536 000, and the contribution margin rate is 40%.

Required

(a) What are the variable costs per unit?

(b) How many units must the company sell to break even?

(c) What is the break-even point in sales dollars?

(d) If the company wants to earn a before-tax profit of \($768\) 000, how many units must be sold? What sales dollar level is required? What is the company’s margin of safety at this sales level?

(e) If the company wants to earn a before-tax profit of 20% of sales, how many units must be sold? What are the sales dollars?

(f) Prepare a CVP chart for the company.