4. 
   

Item	Selling Price per Unit	Variable Cost per Unit	Total Fixed Costs
Product X	$50	$20	$30,000
Product Y	$80	$40	$50,000

Requirements:

• Calculate the contribution margin per unit for each product.
• Determine the breakeven point in units and dollars for both products.
• Calculate the sales volume required to achieve a target profit of $20,000 for each product.
• Discuss the implications of a high contribution margin ratio.
• Analyze the sensitivity of breakeven analysis to changes in selling price, variable cost, and fixed cost.