a) Contribution Margin Nord Corporation, a bicycle manufacturer, presents the following contribution margin format income statement for its most recent month. Use this information to calculate: 1) The unit contribution margin and contribution margin ratio 2) The break-even point in units and in dollars 3) The number of units needed to be sold to earn a target profit of $70,00 Total Sales (500 bikes) $250,000 Less variable expenses 150,000 Contribution margin ......... ... 100,000 Less fixed expenses ........ 80,000 Net income $ 20,000b) Margin of Safety Calculate the breakeven point, margin of safety in dollars and margin of safety percentage for each of Company X and Company Y: Company X Company Y Sales ... ..... $500,000 100% $500,000 100% Less variable expenses ...... 350,000 70 100,000 20 Contribution margin ........ 150,000 30% 400,000 80% Less fixed expenses 90,000 340,000 Net income $ 60,000 $ 60,000