The Peace Company has the following functional income statement for the prior month.

Sales	($50 * 100,000 units)		$5,000,000
Cost of goods sold
	Direct materials	$1,200,000
	Direct labor	$950,000
	Variable factory overhead	$600,000
	Fixed factory overhead	$850,000	$3,600,000
Gross profit			$1,400,000
Selling and administrative expense
	Variable	$250,000
	Fixed	$120,000
	Total	$370,000
Operating income			$1,030,000
There were no beginning and ending inventories.

Required: (show all your work)

1. Calculate the contribution margin per unit. 2. Calculate the contribution margin ratio. 3. What is the break-even point in units? 4. What is the amount of sales in dollars needed to obtain a before-tax profit of $40,000?