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Exercise 4-24 Basic Break-Even Calculations Suppose that Adams Company sells a product for S20

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Exercise 4-24 Basic Break-Even Calculations Suppose that Adams Company sells a product for S20. Unit costs are as follows: 
Direct materials Direct labor Variable factory overhead Variable selling and administrative expense 
$1.90 1.40 2.10 1.60 
Total fixed factory overhead is S54,420 per year, and total fixed selling and administrative expense is 538,530. Required: I. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units.