Problem 8-5 Various CVP Questions: Break-Even Point: Cost Structure; Target Sales (LO1-CC2,3: LO2-CC5, 6,7,10) Tyrene Products manufactures recreational equipment. One of the company's products, a skateboard, sells for $30. The skateboards are manufactured in an antiquated plant that relies heavily on direct labour workers. Thus, variable costs are high, totaling S 18.00 per skateboard, of which 60% is direct abour cost. Over the past year the company sold 51,000 skateboards, with the following operating results Sales (51,000 skateboards) Variable expenses $1,530,000 918,000 Contribution margin Fixed expenses 612,000 492,000 Net operating income $120,000 Management is anxious to maintain and perhaps even improve its present level of income from the skateboards Required: 1a. Compute the CM ratio and the break-even point in skateboards. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Contribution margin Unit sales to break-even point skateboards