Porter Corporation has fixed costs of $500,000, variable costs of $32 per unit, and a
contribution margin ratio of 20 percent.
Compute the following.
a. Unit sales price and unit contribution margin for the given product.
b. The sales volume in units required for Porter Corporation to earn an operating income
of $900,000.
c. The dollar sales volume required for Porter Corporation to earn an operating income
of $900,000.