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

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

Sales ($50 * 100000 units)

Cost of goods sold

$5000000

Direct materials

$1200000

Direct labor

$950000

Variable factory

$600000

Fixed factory

$850000

$3600000

Gross profit

$140000

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 $40000?