J. Tremblay Inc. manufactures and sales a single product . The companys sales and expenses for the last quarter were as follow : TOTAL PER UNIT Sales $ 600 000 $ 40 Less : variable costs 420 000 $28 Contribution margin 180 000 $12 Less : fixed expenses 146 520 Operating income $33 480 REQUIRED : 1. What are the companys contribution margin per unit and the contribution margin ratio Sales / unit $ = 600000/40 = 15 000 Cmu= 40-28= 12 per unit 15 000 x 12 = 180 000 / 600 000 = 30% 2. What is the quarterly break-even point in units sold and in sales dollars Bep= fc/cmu = 146520/ 12 =12 210 x 40 = 488 400 12 210 x 25% = 3052.5 x 40 = 122 100 3. Without resorting to computations, calculate the total contribution margin at the quarterly break-even point. 4. How many units should be sold each quarter to earn a target profit of $ 18 000. Use the formula method. Verify your answer by preparing a contribution format of an income statement at the target sales level 5. Refer to the original data and compute the margin of safety for the quarter in dollar and in percentage. 6. If quarterly sales increase by $ 80 000 and there is no changes in the fixed expenses, by how much would the operating income increase (do not prepare an income statement)

J. Tremblay Inc. manufactures and sales a single product The company's sales and expenses for the last quarter were as follow" + TOTAL PER UNIT Sales $ 600 000 $ 40 Less. variable costs 420 000 $28 Contribution margin 180 000 $12 Less : fixed expenses 146 520 Operating income $33 480 REQUIRED: 1. What are the company's contribution margin per unit and the contribution margin ratio 2. What is the quarterly break-even point in units sold and in sales dollars 3. Without resorting to computations, calculate the total contribution margin at the quarterly break-even point. 4. How many units should be sold each quarter to earn a target profit of $ 18 000. Use the formula method. Verify your answer by preparing a contribution format of an income statement at the target sales level 5. Refer to the original data and compute the margin of safety for the quarter in dollar and in percentage. 6. If quarterly sales increase by $ 80 000 and there is no changes in the fixed expenses, by how much would the operating income increase (do not prepare an income statement)