Table A-1

Cost/Expense item	Amount ($)
Cost of goods sold	1,200,000
Sales Salaries expense	450,000
Office Salaries expense	400,000
Advertising expense	350,000
Office supplies expense	328,000
Rent expense	840,000
Insurance expense	230,000
Utilities expense	290,000
Depreciation expense	282,000
Interest expense	280,000
Tax expense	350,000
Total	5,000,000

Cost-Volume-Profit (CVP)

This section relates to Table A-1. Each electric car battery sells for $6,400 and the variable cost per battery is $1,600. Variable costs include sales salaries, advertising and cost of goods sold. All other costs are fixed costs and they totalled $3,000,000.

Determine:

1. the contribution margin (CM)
2. the break-even point (BEP)
3. the sales units required to achieve a profit $5,000,000