1. Describe the components of the profit equation. 2. What is the difference between a variable cost and a fixed cost? Provide examples of each. 5.For a company with one product describe the equation used to calculate the break-even point or target profit in (a) units, and (b) sales dollars. 6. Distinguish between contribution margin per unit and contribution margin ratio. 8. Review "Business in Action 6.1". How do airlines measure break-even points? According to the information presented, which airline had the lowest break-even point? 10. Describe the assumptions made to simplify the cost-volume-profit analysis described in the chapter. 12. Review Business in Action 6.2". What were the owners concerned about with regard to projected profits? What were the results of the calculations made to address the owners' concerns? 14. When might the contribution margin per unit of constraint be more effective than the contribution margin per unit for making decisions? 24. Contribution Margin per Unit of Constraint. Golf Products, Inc. sells its specialty golf club for $300 per unit. Variable cost is $180 per unit. Each club requires 1.25 machine hours and 2.00 direct labor hours to produce. Calculate the contribution margin (a) per unit, (b) per machine hour, and (c) per direct labor hour. 28. Break-Even Point and Target Profit Measured in Sales Dollars (Single Product). Mammoth Company has monthly fixed costs totaling $200,000 and variable costs of $40 per unit. Each unit of product is sold for $50 (these data are the same as the previous exercise): Required: a. Calculate the contribution margin ratio. b. Find the break-even point in sales dollars. c. What amount of sales dollars is required to earn a monthly profit of $120,000