The Peace Company has the following functional income statement for the prior month.
Sales ($50 * 100,000 units)
Cost of goods sold
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Selling and administrative expense
There were no beginning and ending inventories.
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?