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Alternate problem C Jefferson Company has a plant capacity of 100,000 units, at which level variable costs are $720,000. Fixed costs are expected to be $432,000. Each unit of product sells for $12. 1. Calculate the company's contribution margin ratio and contribution margin per unit. 2. Determine the company's break-even point in sales dollars and units. 3. At what level of sales units and sales dollars would the company earn net income of $144,000? 4. If the selling price were raised to $14.40 per unit, at what level of sales units would the company earn $144,000? P C E F G Alternate Problem C 1 and 2. Current Level Calculate Variable Cost per unit as Variable Costs/plant capacity in units xHint? Variable cost per unit Contribution margin per unit CM ratio Breakeven in Units Breakeven in Sales 3 4 15 16 47 3. Earn income of $144,000 SELF CHECK ONLY 48 Units to Reach Target Income 120,000 49 Correct 50 51 Sales to Reach Target Income 52 53 54 55 4. Sales UNITS required to earn $144,000 if selling price $14.40 56 57 Contribution margin per unit 58 59 61 62 63 Sheet3 Sheet1