Digital Designs manufactures and sells water bottles for different companies.

Fixed costs are estimated at $$150,000$ per month and variable cost for water bottles are $$5\mathrm{.}00$ per unit. The water bottles are sold for $$8$ per unit. The estimated production capacity is $100,000$ water bottles per month.

Required: Using formulas

a$.$ Compute the contribution margin per water bottle

b$.$ Calculate the break$-$even points in terms of the number of water bottles produced and sold

c$.$ Calculate the amount of net income at $85,000$ water bottles sold per month

d$.$ Compute the number of water bottles to be produced and sold to provide $$45,000$ of after$-$tax income, assuming an income tax rate of $25\%$

e$.$ Determine the contribution margin ratio

f$.$ Calculate the break$-$even point in sales revenue

g$.$ Determine the net income at $$600,000\mathrm{.}00$ of sales per month