Hawke Caribbean Sales has developed the following projections for the upcoming year of operations.

Sales of 100,000 units at $5. Units sold equal units produced

Variable costs for 100,000 units:

Direct material $125,000

Direct labor 100,000

Variable overhead 30,000

Selling and administrative expense 45,000

Total fixed costs 120,000

What is Hawkes projected breakeven point in units?

a. 60,000

b. 54,000

c. 500,000

d. 120,000

What is Hawkes projected breakeven point in dollars?

a. $500,000

b. $120,000

c. $130,000

d. $300,000

What is the projected contribution margin ratio?

a. 25%

b. 40%

c. 50%

d. None of the above