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Question(s) / Instruction(s):

Sayler Company sells a hip hop CD. The company's fixed costs are expected to be $300,000 and variable costs are expected to be 60% of sales. Sales are $1,750,000. A CD is sold for $20.

Instructions 
a. Compute the contribution margin per unit.
b. Compute the contribution margin ratio.
c. Compute the break-even point in dollars using the contribution margin ratio.
d. Compute the breakeven point in units using the unit contribution margin.
e. Compute the number of units that must be sold to earn net income of $400,000.

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