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

   Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of $24 each in the coming year. Total variable costs equal $1,060,800. Total fixed costs equal $8,200,000.

   Required:

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

   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.) fill in the blank 2

   2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar. $fill in the blank 3

   3. Calculate the sales revenue needed to achieve a target profit of $210,000. Round your answer to the nearest dollar. $fill in the blank 4

   4. What if the average price per unit increased to $25.50? Recalculate the following:

   a. Contribution margin per unit. Round your answer to the nearest cent. $fill in the blank 5

   b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. fill in the blank 6

   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. $fill in the blank 7

   d. Sales revenue needed to achieve a target profit of $210,000. 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. $fill in the blank 8