Clearview Company is a manufacturer of blown glass vases. The following information pertains to Clearview’s 2012 sales:

Sales price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65

Variable costs per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Total fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000

Required:

1. Determine Clearview Company’s per-unit contribution margin and contribution margin ratio.

2. Using the per-unit contribution margin and the contribution margin ratio, compute:

a. The break-even point in sales dollars and units

b. The sales volume (in dollars and units) needed to generate a target income of $75,000

3. Using the equation approach of C-V-P analysis, compute:

a. The break-even point in sales dollars and units

b. The sales volume (in dollars and units) needed to generate a 15% return on sales