1. For 20Y5, Moores Mowers had total sales of $42,000, with each product selling for $15. Each product had variable costs of $8.

Determine the (a) contribution margin, (b) contribution margin ratio, and (c) unit contribution margin. Round contribution margin ratio to the nearest whole percent.

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2. A new manufacturing company would like to know the sales needed to break even for the first year of operations. The expected total fixed costs will be $27,000 for 15,000 units. The company expects to sell the units for $10 each and incur variable cost of $4 per unit.

Determine the break-even sales point in dollars and units.

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