Using CVP relationships MEMORANDUM TO: B. Laura FROM: E. Hope SUBJECT: Cost-volume relationships Here are the figures you wanted. Last month net income was $19,200 representing a 15 percent return on sales. With our fixed cost of $32,000 we break even at 4,000 units per month.

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REQUIRED Use the data in the above memorandum to calculate contribution margin, selling price per unit, variable cost, and margin of safety.