1.

Test Company reported the following income statement for the most recent period.

Sales (6,000 units)	$120,000
Variable expenses	72,000
Contribution margin	48,000
Fixed expenses	30,000
Operating income	$18,000

Determine the breakeven point in units.

Note: Give your answer using commas. Do not include the word units.

Example: 12,345

2. Determine the number of units Test Company must sell to earn operating income of $20,000. Note: Give your answer using commas. Do not include the word units.

3.

Determine the breakeven point in dollars.

Note: Give your answer using dollar signs and commas but not decimal points (cents).

Example: $12,345

4.

Determine the sales revenue Test Company must generate to earn operating income of $30,000.

Note: Give your answer using dollar signs and commas but not decimal points (cents).

5.

Determine the margin of safety in dollars.

Note: Give your answer using dollar signs and commas but not decimal points (cents).

6.

Determine the margin of safety in units.

Note: Give your answer using commas. Do not include the word units.

Example: 12,345

7.

Test Companys sales manager proposed holding a Holiday Sale. Prices would be discounted 5% and an additional $1,000 would be used for advertising to promote the event. Determine the number of units Test Company must sell during the promotion to continue earning $18,000.

Note: Give your answer using commas. Do not include the word units.

Example: 12,345

8.

Test Company reported sales of $250,000, variable expenses of $190,000 and fixed expenses of $48,000. Determine the sales revenue needed to break even.

Note: Give your answer using dollar signs and commas but not decimal points (cents).

Example: $12,345