Question 6: The following company provides a single product and have provided their summary forecast data shown below relating to its product for 2020.

(8 Marks)

Selling price per unit	$55
Variable manufacturing costs	$23
Annual fixed manufacturing costs	$450000
Variable, marketing, distribution and administration costs	$9
Annual fixed non-manufacturing costs	$229000
Annual volume	50000

a. Calculate the contribution margin per unit.

b. Calculate the contribution margin ratio.

c. Calculate the break-even in units and sales dollars for 2020.

d.Calculate the profit earned in 2020.