I just need proper work shown for this question. The answer is below.

1. $30/unit

2. CM Ratio: .48; VC Ratio: .52

3. 20 units

4. $1,250 (if using the CM ratio approach)

5. 50 units

Gary McKnight is evaluating a business opportunity to sell grooming kits at dog shows. Gary can buy grooming kits at a wholesale cost of $32 per set. He plans to sell them for $62 per set. He estimates fixed costs such as travel costs, booth rental fees, and lodging to be $600 per dog show. 1. What is the contribution margin per grooming kit? 2. What is the contribution ratio? Variable cost ratio? 3. How many grooming kits must Gary sell per show to break-even? 4. How much must Gary earn in Sales Revenue to break-even? 5. How many kits must Gary sell in order to earn a target profit of $900? Sales dollars