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4-24 Algo Suppose that Adams Company sells a product for $19. Unit costs are as follows: Direct materials$2.05Direct labor1.20Variable factory...

4-24 Algo Suppose that Adams Company sells a product for $19. Unit costs are as follows:

Direct materials$2.05Direct labor1.20Variable factory overhead2.15Variable selling and administrative expense1.06Total fixed factory overhead is $55,520 per year, and total fixed selling and administrative expense is $38,530.

Required:1.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.

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