Sunrise Company is a manufacturer of alarm clocks. The following information pertains to Sunrise's 2000 sales:

Sales price per unit ..... 15 Variable costs per unit. ..... 11 Total fixed costs ..... 300,000 Required: 1. Determine Sunrise Company's unit contribution margin.

2. Using the contribution margin approach, compute:

a. The break-even point in sales dollars and units.

b. The sales volume (in dollars and units) needed to generate a target income of $\$ 50,000$.

3. Using the equation approach of CVP analysis, compute:

a. The break-even point in sales dollars and units.

b. The sales volume (in dollars and units) needed to generate a 20 percent return on sales.