Macondo Company produces only one product. The projected income statement for fiscal year 2021 is as follows: Sales (50,000 units) $ 2,450,000 Less: variable Expenses (1,505,000) Contribution margin $ 945,000 Less: Fixed Costs (812,700) Operating Income $ 132,300

Required: (50 points):

to. Calculate the contribution margin, calculate the units that must be sold to reach break-even. Suppose 30,000 units are sold above break-even, what would be the profit. b. Compute the contribution margin ratio and the break-even point in dollars. c. How many units must be sold to obtain a profit equivalent (target income) to 10% of sales? How much would the dollar amount be? d. If variable costs are reduced by $ 2.70, compute the break-even point in units and, in dollars, the contribution margin ratio.

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