1.a. Contribution Margin

Willie Company sells 23,000 units at $32 per unit. Variable costs are $18.88 per unit, and fixed costs are $150,900.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.

a. Contribution margin ratio (Enter as a whole number.)		%
b. Unit contribution margin (Round to the nearest cent.)	$	per unit
c. Operating income

1.b. Target Profit

Woodsman Company sells a product for $165 per unit. The variable cost is $60 per unit, and fixed costs are $735,000.

Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $161,700.

a. Break-even point in sales units		units
b. Break-even point in sales units required for the company to achieve a target profit of $161,700		units