Hanson Company produces and sells grandfather clocks. Its current sales are $250,000. The companys accountant provided the following cost information: Manufacturing costs $60,000 + 40% of sales. Selling costs $15,000 + 10% of sales. Administrative costs $18,000 + 10% of sales.

Based on the information provided:

1. Compute the products contribution margin ratio

2. Compute the companys current net income

3. Compute the products break-even point in dollars

4. Compute the amount of revenue necessary to earn $60,000 in profit