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| Statementshowing Computations | |
| Paticulars | Amount |
| Selling price per unit | 168.00 |
| Variable cost per unit | (126.00) |
| Contribution per unit =168 - 126 | 42.00 |
| Contribution margin ratio = 42/168 | 25.00% |
| Annual fixed costs | 630,000.00 |
| Annual pretax income | 1,050,000.00 |
| Desired contribution = 630,000 + 1050,000 | 1,680,000.00 |
| Unit Sales = 1680,000/42 | 40,000.00 |
| Dollar sales=1680,000/25% | 6,720,000.00 |
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