CH 5 -CVP Analysis Chapter 5 In-Class Problem Erickson, Inc. makes student book bags that sell for $20 each. For the coming year, management expects fixed costs to be $255.000. Variable costs are $15 per unit. Instructions (a) Compute the contribution margin per unit and contribution margin ratio. (b) Compute break-even sales in units and dollars. (C) Compute margin of safety percentage and dollars assuming actual sales are $1,200,000. (d) Compute the unit and dollar sales required to earn net income of $120,000