b

(Make sure to show work so that partial credit may be given.) 1. Hosmer Co. has fixed costs totaling $165,000. Its unit contribution margin is $1.50, and the selling price is $5.50 per unit. Compute the break-even point in units. 2. Johnson Company had Sales of $340,000, Variable costs of $180,000, Contribution Margin of $160,000, fixed costs of $70,000, and Income from Operations of $90,000. Compute Johnson Company's operating leverage. 3. Donald Company has fixed costs of $480,000. It has a unit-selling price of $6, unit variable costs of $4.40, and a target net income of $1,500,000. Compute the required sales in units to achieve its target net income. 4. For Murphy Company, actual sales are $2,000,000, and break-even sales are $1,500,000. Compute (a) the margin of safety in dollars, and (b) the margin of safety ratio. 5. For Rockett Company, sales are $500,000, variable costs are $200,000, and fixed costs are $240,000. Compute (a) the contribution margin in dollars, (b) the contribution margin ratio