CVP analysis Forks, Inc. produces and sells teddy bears for $25. To make one teddy bear it cost $12 for materials and $2.00 for labor. Rent on the facility for a month cost 49,000 and machine maintenance cost 6,000 each month. Required: 1) Compute the contribution margin per unit. 2) Compute the break-even point in units and dollars for a month. 3) How many units must be sold to earn an after tax profit of $14, 520 (tax rate 40%) 4) What would the break-even point in units be if instead of paying a flat fee for rent they paid $8 per bear to the landlord? 5) If they plan to sell 13, 800 bears would they be better off with the fixed rent or the variable rent? Explain