1. Bravo Company produces and sells storage sheds. Its current sales are $500,000. The company's accountant provided the following information:

Selling price per unit $40.00

Manufacturing costs $100,000 + 40% sales

Selling costs $30,000 + 10% sales

Administrative costs $45,000 + 10% sales

1. Compute the product's contribution margin ratio.
2. Compute the company's current net income.
3. Compute the product's break-even point in dollars and units.
4. Compute the amount of revenue necessary to earn $60,000 in profit.
5. Compute the unit contribution margin.
6. Compute the company's current margin of safety ratio.