Problem 5-20

I'd like help with the following problem, but please explain how you arrive at your answers. Thank you.

Problem 5-20 Basics of CVP Analysis; Cost Structure [LO1, LO3, LO4, LO5, LO6] Memofax, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below: Sales (12,900 units at $40 per unit) $ 516,000 Variable expenses 309,600 Contribution margin 206,400 Fixed expenses 230,400 Net operating loss $ (24,000)

Required: 1. Compute the company's CM ratio and its break-even point in both units and dollars. (Omit the "%" and "$" signs in your response.) CM ratio % Break-even point in units Break-even point in dollars $