1. What is SMFs break-even point in units? 2. What is SMFs break-even point in dollars? 3. What amount of dollar sales is needed for SMF to achieve a target pretax income of $162,000 for FY 2018? 4. If this target is achieved, what is SMFs margin of safety? 5. If SMF raised its selling price to $240/unit, compute its: a. CM/unit b. CM ratio c. Break-even point in units d. Break-even point in dollars 6. SMFs management team decides that increasing marketing costs by $150,000 will result in a sales increase of 5,000 units. Prepare a forecasted CM income statement for 2018 if the company incurs the additional marketing costs.

SMF Corp. CM Income Statement FYE 6/30/2017