Requirement 5. Assume the company sold only basic shirts (no custom designs) and incurred fixed costs of $900 per month. a. Calculate the contribution margin per unit, contribution margin ratio, required sales in units to break even, and required sales in dollars to break even. Begin by calculating the contribution margin per unit. (Enter amounts to the nearest cent.) Sales price per unit Variable costs per unit = Contribution margin per unit 1.00 $ 5.00 4.00 Next, calculate the contribution margin ratio. (Enter the amounts in the formula to the nearest cent and round the contribution margin ratio to the nearest hundredth of a percent, X.XX%.) Contribution margin per unit Sales price per unit Contribution margin ratio $ 1.00 5.00 20.00 % = Now calculate the required sales in units to break even assuming the company sold only basic shirts (no custom designs) and incurred fixed costs of $900 per month. (Complete all input fields. Enter a "0" for any zero balances. Enter amounts into the formula to two decimal places as needed.) Fixed costs Target profit 0 ) - Contribution margin per unit ) + 1 Required sales in units 900 ($ 900 The required sales in dollars, rounded to the nearest whole dollar, to break even is 4,500 b. Determine the margin of safety in units and dollars. Begin with the margin of safety in units. Expected sales (in units) Breakeven sales (in units) 1,250 900 Margin of safety in units 350 (Round your final answer to the nearest whole dollar.) The margin of safety in dollars, rounded to the nearest whole dollar, is 1,750 (After you hit continue, the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) c. Graph Atlanta Shirt Company's CVP relationships. Show the breakeven point, the sales revenue line, the fixed cost line, the total cost line, the operating loss area, and the operating income area. Begin by plotting and labeling the breakeven point, and plotting and labeling the lines for sales revenue, fixed costs, and total costs for the company's basic shirt line. When plotting each line, use the points where the sale volume in units is equal to zero, and where the sales volume in units is equal to the breakeven point. (Enlarge the graph to medium size and use the point tool and line tool buttons displayed below to draw the graph. Click the "???" to select a label for the breakeven point and for each of the lines.)