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Gilley, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units) $120,000 Less variable costs (68,000) Contribution margin

Gilley, Inc., sells a single product. The company's most recent income statement is given below.

Sales (4,000 units) $120,000

Less variable costs (68,000)

Contribution margin 52,000

Less fixed expenses (40,000)

Net income $ 12,000

Required: Determine the following:

a. Contribution margin per unit is $ _______________ per unit

b. If sales are doubled to $240,000,

total variable costs will equal $ _______________

c. If sales are doubled to $240,000,

total fixed costs will equal $ _______________

d. If 10 more units are sold, profits will increase by $ _______________

e. Compute how many units must be sold to break even. # _______________

f. Compute how many units must be sold

to achieve profits of $20,000. # _______________

g. Compute marring of safety in units #______________

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