a. The contribution margin is the amount by which a products exceeds its I b. What is the formula for calculating the contribution margin per unit? c. If a company sells widgets for $10 and incurs variable costs of $4 per unit, what is the contribution margin per unit? d. If the company sells 100 widgets, what is their total contribution margin? e. What is the formula for calculating contribution margin ratio? f. What is the contribution margin ratio for the company selling widgets? & If a company's variable costs are 40% of selling costs, what is their contribution margin ratio? 20. Calculate a Break-even Point in Units and Dollars a. The break-even point is the level of sales at which the are equal, so there is ____ profit or loss. b. What is the formula to calculate the breakeven point in units? c. What is the formula to calculate the breakeven point in dollars? d. Suppose the widget company from #19 above has fixed costs of $120,000. How many widgets must they sell to break even? and Styles 5 Voice Editing e. How many dollars of sales revenue must they earn to break even? f. Suppose the company wants to earn profits of $60,000. How many widgets must they sell to achieve their desired profit level? 8. Prove that this number of widgets sold would produce the desired profits by creating a contribution margin income statement below: I h. For the breakeven chart below, label the items marked: E B C h. For the breakeven chart below, label the items marked: A L E D A. B. C. D. E