CONTRIBUTION MARGIN, CONTRIBUTION MARGIN RATIO, BREAK-EVEN POINT IN UNITS, BREAK-EVEN SALES REVENUE Next year, Jefferson Company expects to sell 140,000 units at $7.60 each. Variable costs are 60 percent of sales price. Fixed costs total $349,600.

Required:

. Calculate the contribution margin per unit.

. Calculate the break-even point in units.

. Calculate the break-even sales revenue.

. Prepare an income statement for Jefferson at break even.

Exercise