The Waldo Company Had the Following Functional Income Statement for the Month

The Waldo Company had the following functional income statement for the month of July:
$\begin{array}{lrr}\text { Sales }(\$ 20 \times 20,000 \text { units }) & & \$ 400,000 \\\text { Costs of goods sold: } && \\\text { Direct materials } & \$ 60,000 & \\\text { Direct labour } &40,000 & \\\text { Variable factory overhead } &120,000 \\\text { Fixed factory overhead } & \underline{50,000} & \underline{270,000} \\\text { Gross profit } & & \$ 130,000\\\text { Selling and administrative expenses: } \\\text { Variable } &\$ 20,000 & \\\text { Fixed } & \underline{50,000} & \underline{70,000}\\\text { Operating income }&& \$ 60,000\end{array}$
There were no beginning and ending inventories.
a.Calculate the contribution margin per unit.
b.Calculate the contribution margin ratio.
c.What is the break-even point in units?
d.What is the amount of sales in dollars needed to obtain a before-tax profit of $40,000?