Bowerston Company manufactures and sells a single product. The companys sales and expenses for last year follow:

Total Per Unit %

Sales................................................................................................................$100,000 $20 ?

Variable expenses.......................................................................................... 60,000 12 ?

Contribution margin.......................................................................................? ? ?

Fixed expenses................................................................................................12,000

Operating income........................................................................................$28,000

Requirements: (SHOW ALL WORK)

Fill in the missing numbers in the preceding table. Use the table to answer the following questions:

What is the total contribution margin?

What is the per-unit contribution margin?

What is the operating income?

How many units were sold?

Use the table to answer the following questions about break-even analysis:

What is the annual break-even point in units?

What is the annual break-even point in sales dollars?

Use the table to answer the following questions about target profit analysis and safety margin:

How many units must the company sell in order to earn a profit of $50,000?

What is the margin of safety in units?

What is the margin of safety in sales dollars?

What is the margin of safety as a percentage?