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

Direct materials	$2.40
Direct labor	1.25
Variable factory overhead	2.00
Variable selling and administrative expense	0.75

Total fixed factory overhead is $56,590 per year, and total fixed selling and administrative expense is $38,610.

	Required:
1.	Calculate the variable cost per unit and the contribution margin per unit.
2.	Calculate the contribution margin ratio and the variable cost ratio.
3.	Calculate the break-even units.
4.	Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers.