A manufacturer predicts fixed costs of \(\$ 502,000\). Its product sells for \(\$ 180\) per unit, and it incurs variable costs of \(\$ 126\) per unit. Its target income is \(\$ 200,000\).

1. Compute the contribution margin ratio.

2. Compute the dollar sales needed to achieve the target income.

3. Compute the unit sales needed to achieve the target income.

4. Break-even sales is 9,296 units. Compute the margin of safety (in dollars) if the company expects to sell 10,000 units.