Perez Company makes and sells products with variable costs of $57 each. Perez incurs annual fixed costs of $30,000. The current sales price is $72.

The following requirements are interdependent. For example, the $6,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $67 sales price introduced in Requirement d applies to the subsequent requirements.

a. Determine the contribution margin per unit

b. Determine the break-even point in units and in dollars. Prepare an income statement using the contribution margin format.

c. Suppose that Perez desires to earn a $6,000 profit. Determine the sales volume in units and dollars required to earn the desired profit. Prepare an income statement using the contribution margin format.

d. If the sales price drops to $67 per unit, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format.

e. If fixed costs drop to $24,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format.

f. If variable cost rises to $55 per unit, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format.

g. Assume that Perez concludes that it can sell 2,200 units of product for $67 each. Recall that variable costs are $55 each and fixed costs are $24,000. Compute the margin of safety in units and dollars and as a percentage. (Do not round intermediate calculations. Round your answers to the nearest whole number.)