BartA????1s Bike Shop has the following income statement.
Sales ($150 per unit)
$150,000
Less Cost of Goods sold ($96 per unit)
96,000
Gross margin
54,000
Less Operating costs
Salaries
$24,000
Advertising
12,000
Shipping ($6 per unit)
6,000
42,000
Operating income
$ 12,000
Required:
a. Calculate the contribution margin per unit.
b. Calculate the contribution margin ratio.
c. Calculate the break-even point in units. In sales dollars.
d. Calculate the margin of safety in units. In dollars.