Garner Manufacturing Inc. sold 20,000 units and recorded sales of $800,000 for the first quarter of 2010. In making the sales, the company incurred the fol- lowing costs and expenses.

(a) Prepare a CVP income statement for the quarter ended March 31, 2010.

(b) Compute the contribution margin per unit.

(c) Compute the contribution margin ratio.

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Variable Fixed Cost of goods sold $250,000 $110,000 Selling expenses 100,000 25,000 Administrative expenses 82,000 73,000