Question $4$ Calculation of Contribution Margin

Korara Company provides the following information for the period.

Sales

$$687,500$

Variable Cost $$ Direct Materials

$151,250$

Variable Cost $$ Direct Labour

$302,500$

Variable Cost $$ Selling and Administration Expenses

$13,750$

Fixed Factory Overhead

$125,000$

Fixed Administration Costs

$45,000$

Units Sold

$55,000$

Required:

a$)$

What is the expected profit from the sale of $55,000$ units and at $65,000$ units?

b$)$

What is the contribution margin per unit and contribution ratio $($expressed as a $\%)?$