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5. What is the total sales revenue to make a target profit of $1,200? (2 points) 6. If the sales level is expected at $2,000
5. What is the total sales revenue to make a target profit of $1,200? (2 points) 6. If the sales level is expected at $2,000 this period, what is the margin of safety? (1) In terms of sales dollars? (2 points) (2) In terms of sales units? (2 points) Use the following information for Questions 1 through 6. Selling price of a unit is $100. Unit variable costs are $60. Total fixed costs are $400. 1. Compute unit contribution margin. (2 points) 2. Compute the break-even point in sales units. (4 points) 3. Compute the break-even point in sales dollars. (2 points) 4. How many total units should be sold to make a target profit of $1,200? (4 points) 5. What is the total sales revenue to make a target profit of $1,200? (2 points) 6. If the sales level is expected at $2,000 this period, what is the margin of safety? (1) In terms of sales dollars? (2 points) (2) In terms of sales units? (2 points)
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