The following cost information is available for a single product manufactured and sold by Dreamer Corp.:

Variable costs: Direct materials $ 10 Fixed costs (in total):

(Per unit) Direct labor 12 Fixed overhead $ 540,000

Variable overhead 3 Fixed selling 360,000

Variable selling 2

Units sell for $36 each, and the firm is currently manufacturing and selling 120,000 units.

1. (6 pts) Determine the contribution margin per unit and the contribution margin ratio (percentage).

2. (3 pts) Calculate the firm