1. Health-Temp Company is a placement agency for temporary nurses. It serves hospitals and clinics throughout the metropolitan area. Health-Temp Company believes it will place temporary nurses for a total of 26,500 hours next year. Health-Temp charges the hospitals and clinics $100 per hour and has variable costs of $79.00 per hour (this includes the payment to the nurse). Total fixed costs equal $541,800.

   Required:

   1. Calculate the contribution margin per unit and the contribution margin ratio (express the ratio as a decimal rather than a percentage). If required, round your answers to two decimal places.

   Contribution margin per unit	$
   Contribution margin ratio

   2. Calculate the sales revenue needed to break even. $

   3. Calculate the sales revenue needed to achieve a target profit of $130,200. $

   4. What if Health-Temp had target operating income (profit) of $159,600? Would sales revenue be larger or smaller than the one calculated in Requirement 3?

   By how much? $