Hot Locks Company developed the following information for its hair dryer sales:

Sales price$60.50 per unitVariable cost of goods sold$21.50 per unitFixed cost of goods sold$130,000Variable selling expense$1.00Fixed selling expense$4,000Fixed administrative expense$6,600

For the year ended December 31, 2020,Hot Locks Company produced and sold 20,000 hair dryers.

Required:

a) Determine the total contribution margin in dollars, contribution margin per unit, and as contribution margin ratio (round to 2 decimal points) (3 marks).

b) Calculate the break-even point in units (round to the nearest dollar). (3 marks).

b) Briefly explain how the contribution margin differs from gross profit margin. (2 marks)