16-3

Break-Even Units and Sales Revenue: Margin of Safety There is no variable selling expense; fixed selling and administrative expenses total $35,000. Required: In your computations that involve the contribution margin ratio, do not round the ratio. 1. Calculate the break-even point in units. units 2. Calculate the break-even point in sales revenue. 3. Calculate the margin of safety in units for the coming year. units 4. Calculate the margin of safety in sales revenue for the coming year. 5. What if the total selling and administrative expenses are reduced to $9,260 ? Recalculate the following