1. Accounting Company sells chairs for $40 each. Unit variable costs are 30% of sales dollars per chair. Total fixed costs are $400,000. Target operating income is $200,000.

a. What is the unit contribution margin?

b. What is the total contribution margin in dollars?

c. What is the break-even point in dollars?

d. What is the break-even point in units?

e. How many units must be sold to reach the target operating income?

f. How many sales dollars must be earned to reach the target operating income?

g. If unit variable costs decrease by $3, what is the break-even point in units?

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