Omar Company Sales price $50 per unit

Production cost: direct materials $25, direct labor $8, variable overhead $4 and production fixed cost $80,000 per month. Operating expense were $40,000 fixed, $3 variable per unit. Contribution margin ratio and B.E.P are

a.

40% contribution margin ratio and $300,000 B.E.P sales

b.

30% contribution margin ratio and $400,000 B.E.P sales

c.

50% contribution margin ratio and $240,000 B.E.P sales

d.

20% contribution margin ratio and $600,000 B.E.P sales

e.

30% contribution margin ratio and $500,000 B.E.P sales