Current operating income for Bay Area Cycles Co. is $54,000. Selling price per unit is $100, the contribution margin ratio is 30%, and fixed expense is $216,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Fixed expense Operating income $ Additional unit sales Per Unit 100.00 Volume units $ Total (216,000) 54,000 Ratio 2. How many additional unit sales would be necessary to achieve operating income of $135,000? 100 % % 30 %

Current operating income for Bay Area Cycles Co. is $54,000. Selling price per unit is $100, the contribution margin ratio is 30%, and fixed expense is $216,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $135,000