Tone & Jules Co. had the following functional income statement for the month of August 2003.

Sales ($20 x 20000 units) $400000

Cost of goods sold:

Direct Materials $60000

Direct Labor $40000

Variable factory overhead $120000

Fixed Factory cost $50000 $270000

Gross Profit $130000

Selling & Admin. Expenses:

Variable $20000

Fixed $50000 $70000

Operating Income $60000

There are no beginning and ending inventories.

REQUIRED:

a. Calculate the contribution margin per unit

b. Calculate the contribution margin ratio

c. What is the break-even points in units?

d. What is the amount of sales in dollars needed to obtain a before-tax profit of $40000?