Austin Automotive sells an auto accessory for $180 per unit. The company’svariable cost per unit is $30 for direct material, $25 per unit for direct labor,and $17 per unit for overhead. Annual fixed production overhead is $37,400, and fixedselling and administrative overhead is $25,240.a. What is the contribution margin per unit?b. What is the contribution margin ratio?c. What is the break-even point in units?d. Using the contribution margin ratio, what is the break-even point in sales dollars?e. If Austin Automotive wants to earn a pre-tax profit of $51,840, how many unitsmust the company sell?

Austin Automotive sells an auto accessory for $180 per unit. The company’svariable cost per unit is $30 for direct material, $25 per unit for direct labor,and $17 per unit for overhead. Annual fixed production overhead is $37,400, and fixedselling and administrative overhead is $25,240.a. What is the contribution margin per unit?b. What is the contribution margin ratio?c. What is the break-even point in units?d. Using the contribution margin ratio, what is the break-even point in sales dollars?e. If Austin Automotive wants to earn a pre-tax profit of $51,840, how many unitsmust the company sell?