A company sells small motors as a component part to automobiles. The Model 101 motor sells for $800 and has per-unit variable costs of $480 associated with its production. The company has fixed expenses of $100,000 per month. In August, the company sold 420 of the Model 101 motors.

A. Calculate the contribution margin per unit for the Model 101.

Contribution margin $ per unit

B. Calculate the contribution margin ratio of the Model 101.

Contribution margin ratio %

C. Prepare a contribution margin income statement for the month of August. Use a minus sign for a net loss if present.

Income Statement
Sales	$
Variable Costs
Contribution Margin	$
Fixed Costs
Net Income (Loss)	$