Super Gutter sells pipes for $11 each. The unit variable costs per pipe are $8.00. Fixed costs total $4,820.

Required:

7. What is the contribution margin per pipe?

8. What is the break-even point in dollars?

9. How many pipes must be sold to earn a pre-tax income of $5,000?

10. What is the margin of safety assuming 1,800 pipes are sold?