1.Break-Even Units, Contribution Margin Ratio, Margin of Safety

Khumbu Company's projected profit for the coming year is as follows:

Total

Per Unit

Sales

$2,915,500

$34.00

Total variable cost

991,270

11.56

Contribution margin

$ 1,924,230

$ 22.44

Total fixed cost

1,021,008

Operating income

$ 903,222

Required:

1.Compute the break-even point in units. If required, round your answer to nearest whole value.

fill in the blank 1units

2.How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value.

fill in the blank 2units

3.Compute the contribution margin ratio. If required, round your answer to nearest whole number.

fill in the blank 3%

Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected.

$fill in the blank 4

4.For the projected level of sales, compute the margin of safety in units.

fill in the blank 5units

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