Suppose that Larimer Company sells a product for $20. Unit costs are as follows:Direct materials $1.70Direct labor 1.60Variable factory overhead 2.00Variable selling and administrative expense 1.50Total fixed factory overhead is $55,240 per year, and total fixed selling and administrative expense is $38,480.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. Enter all amounts as positive numbers. Amount DescriptionsRefer to the list below for the exact wording of text items within your income statement. Amount Descriptions Operating income Operating loss Sales Total contribution margin Fixed cost Variable cost Calculations1. Calculate the variable cost per unit and the contribution margin per unit. Round your answers to two decimal places. Unit variable cost Unit contribution margin 2. Calculate the contribution margin ratio and the variable cost ratio. Contribution margin ratio %Variable cost ratio %3. Calculate the break-even units. Contribution Margin Income Statement4. Prepare a contribution margin income statement at the break-even number of units. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. Enter all amounts as positive numbers. Larimer CompanyContribution Margin Income StatementAt Break-Even Number of Units12345