1. Black Pearl, Inc., sells a single product. The company's most recent income statement is given below.

Sales $50,000

Less variable expenses (30,000)

Contribution margin 20,000

Less fixed expenses (12,500)

Net income $ 7,500

Required:

a. Contribution margin ratio is ________ %

b. Breakeven point in total sales dollars is $ ________

c. To achieve $40,000 in net income, sales must total $ ________

d. If sales increase by $50,000, net income will increase by $ ________