A Slice of Italy manufactures and sells homemade baked pasta for $30 per dish. During January 2022 the company sold 1,000 dishes of pasta and incurred variable costs of $18,000 to manufacture the1,000 dishes of pasta.

Required :

a) Calculate the contribution margin ratio for January 2022. Show all your workings. (3 marks)

b) If the break-even sales units per month is 900 units, calculate the total fixed costs for January. Show all of your workings. (2 marks)

c) Calculate the required sales revenue for January 2022, if the businesss target profit for the month is $4,200. Show all your workings. (2 marks)

d) If the businesss variable costs increased by $2 per dish of pasta, and fixed costs and selling price remain the same, explain how the increase in variable costs would impact the break-even point in sales units. (1 mark