Skyler Industries, Inc., produces and sells swimwear. The following information is for a recent period:

\section*{Required}
A. What is the unit contribution margin? What are some actions Skyler could take to increase the unit contribution margin?
B. What is the contribution margin ratio? What does this mean?
C. Use the contribution margin ratio to calculate sales dollars at the breakeven point.

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Production Sales Unit selling price Variable product costs Variable selling and administrative Fixed manufacturing overhead Fixed selling and administrative 10,000 units 7,000 units $50 $80,000 $2 per unit sold $51,000 $70,000