1. What is the contribution margin per unit if a company has sales of $1,600,000 and variable costs of $460,000 and produced 4,000 units. What is the contribution margin ratio? *

2. Peach Company's estimated units sales price is $125, the variable cost is $22 per unit, fixed costs are $65,000 and their income tax rate is 20%. Prepare a contribution margin income statement to help Peach Company's management predict income at 2,500 units of sales.