Response to the following problem:
Lakeshore Company sells a single product. The selling price is $30 per unit and the variable expenses are $18 per unit. The company's most recent annual contribution format income statement is given below:
Sales $135,000
Less variable expenses 81,000
Contribution Margin 54,000
Less fixed expenses 48,000
Net operating income $ 6,000
a) Compute the contribution margin per unit.
b) Compute the CM ratio.
c) Compute the break-even point in sales dollars.
d) Compute the break-even point in units sold.
e) How many units must be sold next year to double the company's profits?