Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak.

$\backslash$table$[[$Kevlar ${?}^{},$$$220,$per kayak$],[$Resin and supplies,$$160,$per kayak$],[$Finishing kit $($seat$,$ rudder, ropes, etc.$),$$$170,$per kayak$],[$Direct Labor,$$430,$per kayak$],[$Selling and administrative expenses$-$variable,$$450,$per kayak$],[$Selling and administrative expenses$-$fixed,$$227,650,$per year$],[$Manufacturing overhead$-$fixed,$$290,000,$per year$]]$

Bill and Diane have asked you to provide a cost$-$volume$-$profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the sel the composite kayak will be $$2,300.$

Question A $-$ Claculate unit Variable costs

Question B $-$ Determine the unit contribution margin

Question C $-$ Using the unit margin, determine the break even point in sales units for this product line

Question D $-$ Assume that current designs would like to earn net income of $$313,200$ on this product line. Using the unit contribution msrgin, calculate the number of units that need to be sold to achieve this goal.

Question E $-$ Based on the most recent sales forecast, Current Designs expects to sell $1,000$ units of this model. Calculate the margin of safety in dollars and the margin of safety ratio.