1. Contribution Margin Ratio, Break-Even Sales Revenue, Sales Revenue for Target Profit

   Schylar Pharmaceuticals, Inc., plans to sell 110,000 units of antibiotic at an average price of $19 each in the coming year. Total variable costs equal $627,000. Total fixed costs equal $7,900,000.

   Required:

   1. What is the contribution margin per unit? Round your answer to the nearest cent. $

   What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.)

   2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar. $

   3. Calculate the sales revenue needed to achieve a target profit of $230,000. Round your answer to the nearest dollar. $

   4. What if the average price per unit increased to $20.50? Recalculate the following:

   a. Contribution margin per unit. Round your answer to the nearest cent. $

   b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places.

   c. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. $

   d. Sales revenue needed to achieve a target profit of $230,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. $