Actual monthly sales for May were 10,000 units. The selling price was $50, while the variable costs were $30 per unit. Besides that, the fixed costs were $60,000 per month and the company had a 40 percent tax rate.

Required:

Determine each of the following values:

a. What was the contribution margin per unit?

b. What was the breakeven point in units?

c. What was the breakeven point in sales dollars?

d. How many units would need to be sold to obtain a pretax profit of $90,000?

e. What is the margin of safety in units?

f. Prepare a variable costing income statement for May.