CARM produces and sells garage doors and has a relevant range between 1,000 units and 1,800 units per month. Manufacturing overhead costs range from $360,000 to $480,000 at the low and high ends of the relevant range, respectively. All CARMs products are customized, so it does not keep any inventory. CARMs income tax rate is 30%. The following is CARMs sales and costs information for the month of October: Sales $1,680,000 Sales units 1,400 Direct materials $154,000 Direct labour $308,000 Manufacturing Overhead ? Variable Operating Expenses 10% of Sales Earnings after taxes $168,000.

1. find:

(a) the contribution margin: %

(b) the gross margin: %

2. find

(a) the sales dollars needed to earn income after taxes of $210,000: $

(b) sales dollars required to yield an after-tax profit of 14% of sales: $