Waldo Water world is a distribution replacement water cooler in the Montreal area for $150 per cooler, with variable costs = $70. Waldo's fixed cost are equal to 60,000 per month. and sold = 1,000 units per month.

• Compute the contribution margin per unit.
• Using the amounts computed in part (a), contribution margin income statement
• Compute in sales dollars: 1. Breakeven, 2. Margin of safety. 3. Sales needed for 25,000 income

Sales Revenue ($150 x 750 units $112,500 Less: Variable Costs ($70 x 750 Units 52,500 Contribution Margin 60,000 Less: Fixed Costs 60,000 Net Income (Loss) $O