Catherine is planning to makefancy, multi-tiered wedding cakes for the next wedding season. To make thecakes, she must invest $750 in some special baking tools. To promote herbusiness, she also needs to spend $5010 to advertise in the newspaper. She estimates that supplies and materials for each cake will cost $370. She is planning to set the price for each cake at $550.

(a) Compute the contribution margin.

(b) Compute the contribution rate.

(c) Compute thebreak-even point in units.

(d) Compute thebreak-even point in sales dollars.