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7.1

Suppose that Patron Company sells a product for $19. Unit costs are as follows: Total fixed factory overhead is $51,658 per year, and total foxed selling and administrative expense is $38,630. Required: 1. Calculate the variable cost per unit and the contribution marpin per unit: 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Caiculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of unis. Enter all amounts as positive numbers. Refer to the ist below for the exact wording of text iems within your income statement