Problem #$1($Single$-$Product CVP$)$

Roustabout Company manufactures skateboards. Last year$$s income statement is summarized below.

Skateboards

$(2,000$ units$)$

Total

Sales Revenue $ $100,000($$$50$ per unit$)$

Variable Costs $ $40,000($$$20$ per unit$)$

Contribution Margin $ $60,000($$$30$ per unit$)$

Fixed Costs $ $55,500$

Pre$-$Tax Profit $ $4,500$

Required:

a$.$ What is the CM per unit?

b$.$ How many skateboards must be sold to breakeven?

c$.$ What is the CM ratio?

d$.$ What level of revenues should be to earn after$-$tax profit of $$147,000($with a tax rate of $30\%)?$