The Waldo Company had the following data for 2011:

Sales ($20 20,000 units) $400,000

Variable cost $240,000

Fixed cost $100,000

Operating income $60,000

Required:

A. Calculate the contribution margin per unit.

B. What is the break-even point in units?

C. What is the amount of sales in units needed to obtain an operating income of $40,000?

D. What is the margin of safety in units, assuming operating income is $80,000?