What is the amount of sales in dollars

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The Peace Company has the following functional income statement for the prior month.

Sales ($50 * 100,000 units)



Cost of goods sold

$5,000,000


Direct materials

$1,200,000


Direct labor

$950,000


Variable factory

$600,000


Fixed factory

$850,000

$3,600,000

Gross profit

$1,400,00


Selling and administrative expense



Variable



Fixed



Operating income

There were no beginning and ending inventories.

Required:

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?

Reference no: EM13546363

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