(CVP) Houston Corp. sells a product for $180 per unit. The company’s vari¬ able costs per unit are $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $37,400, and fixed selling and administrative overhead is $25,240.

a. What is contribution margin per unit?

b. What is the contribution margin ratio?

C. What is break-even point in units?

d. Using the contribution margin ratio, what is the break-even point in sales dollars?

e. If Houston Corp. wants to earn a pre-tax profit of $25,920, how many units must the company sell?

LO.1