Tree Inc. sells its only product for $20. Variable cost is $7.50 per

unit, and fixed cost is $5,000 per month.

Required

Calculate the following:

(a) The contribution margin per unit

(b)

The contribution margin ratio

(c)

The break-even point

(d) The expected operating profit in a month when 500 units are

sold

(e)

The number of units that need to be sold to make an operat-

ing profit of $2,000