Wyatt Inc. expects to maintain the same inventories at the end of the year as at the begin- ning of the year. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. It is expected that 60,000 units will be sold at a price of $20 per unit. Maximum sales within the relevant range are 70,000 units.

1. What is (a) the contribution margin ratio and (b) the unit contribution margin?

2. Determine the break-even point in units.

3. What is the margin of safety?

Answer rating: 100% (QA)

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