Nike produces sports shoes and has the following cost structure:

• Selling Price per Pair: $100
• Variable Cost per Pair: $60
• Fixed Costs: $2,000,000

Nike sold 80,000 pairs of shoes last year.

Requirements:

1. Calculate the Contribution Margin per unit.
2. Determine the Break-Even Point in units and sales dollars.
3. Calculate the Margin of Safety in units and sales dollars.
4. Prepare a Cost-Volume-Profit (CVP) graph for Nike.