1. Consider the following information developed by the accountant at Curl, Inc.:

1. What is the Contribution Margin ratio?

2. Calculate the break-even point in units by using the contribution margin ratio.

3. Calculate the break-even point in Sales Dollars by using the contribution margin ratio.

4. We can determine the number of surfboards that Curl must sell to earn a profit of $100,000 using the contribution margin approach.

5. Curl, Inc. has a break-even point of $200,000 (400 units) in sales. If actual sales are $250,000 (500 units), what is the margin of Safety in Dollars? In units?

Sales (500 surf boards) Less: variable expenses Contribution margin Less: fixed expenses Net income Total $250,000 150,000 $100,000 80,000 $ 20,000 Per Unit $ 500 300 $ 200