Unit sales 20,000 units

Selling price per unit $60 per unit

Variable expenses per unit $45 per unit

Fixed expenses $240,000

CVP Relationships Compute the CM ratio

Selling price per unit Variable expenses per unit =

Contribution margin per unit =

CM ratio =

Compute the break-even

Break-even in unit sales=

Break-even in dollar sales=

Compute the margin of safety

Margin of safety in dollars=

Margin of safety percentage=