The Peace Company has the following functional income statement for the prior month.
Sales ($50 * 100,000 units)
Cost of goods sold
Selling and administrative expense
There were no beginning and ending inventories.
a. Calculate the contribution margin per unit.
b. Calculate the contribution margin ratio.
c. What is the break-even point in units?
d. What is the amount of sales in dollars needed to obtain a before-tax profit of $40,000?