4) Thomas Corporation has a targeted operating income of $500,000 for the upcoming year. The selling price of their single product is $40.00 each, while the variable cost per unit is $15.00. Fixed costs total $270,000.

Calculate the following:

a. Contribution margin per unit

b. Contribution margin ratio

c. Break-even point in units

d. Units to be sold to earn the targeted operating income

e. Using the contribution margin ratio, the sales (in dollars) needed to achieve an operating income of $300,000.