(2) Break- even sales SolutionSale price per unit = 20 per unit
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(2) Break- even sales Solution Sale price per unit = 20 per unit Variable cost per unit = 20*63% = 12.60 per unit Contribution margin per unit = 20*37% = 7.40 per unit a) Break even point = 2516000/7.4 = 340000 units Break even sales = 340000*20 = 6800000 b) Margin of safety = 8000000-6800000 = 1200000 Margin of safety ratio = 1200000*100/8000000 = 15%