Suppose that Patron Company sells a product for $$20.$ Unit costs are as follows:

Direct materials

Direct labor

$$2\mathrm{.}25$

Variable factory overhead

$1\mathrm{.}60$

Variable factory overhead

$2\mathrm{.}00$

Variable selling and administrative expense $,0\mathrm{.}95$

Total fixed factory overhead is $$55,240$ per year, and total fixed selling and administrative expense is $$38,480.$

Required:

Calculate the variable cost per unit and the contribution margin per unit.

Calculate the contribution margin ratio and the variable cost ratio.

Calculate the break$-$even units.

Prepare a contribution margin income statement at the break$-$even number of units. Enter all amounts as positive numbers.