3. Quiltworks Company reported actual sales of $2,000,000, and fixed costs of $450,000. The contribution margin ratio is 30%. Instructions Compute the margin of safety in dollars and the margin of safety ratio. 4. Alley Company makes student book bags that sell for $20 each. For the coming year, management expects fixed costs to be $240,000. Variable costs are $15 per unit. Instructions (a) Compute break-even sales in dollars using the mathematical equation. (b) Compute break-even sales using the contribution margin ratio. (c) Compute margin of safety ratio assuming actual sales are $1,200,000. (d) Compute the sales required to earn net income of $120,000, using the mathematical equation