Break-Even in Units and Sales Dollars, Margin of Safety Drake Company produces a single product. Last year's income statement is as follows: Sales (20,000 units) $1,218,000 Less: Variable costs 828,000 Contribution margin Less: Fixed costs Operating income $390,000 256,900 $133,100 Required: 1. Compute the treak-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places, Round your final answers to the nearest whole unit or dollar Break-even units units Break even dollars 2. What was the margin of safety in dollars for Drake Company lost year? Round your final answer to the nearest whole dollar 7. Suppose that Drake Company is considering an investment in new technology that wil increase find costs by $225,500 per year but will tower variable costs to so percent of tales. Units sold will remain unchanged. Prepare a budgeted income statement astuming Drake makes this investment. Round all amounts to the nearest dolar. Drake Company Budgeted Income Statement 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar Break-even units units Break-even dollars 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar. 3. Suppose that Drake Company is considering an investment in new technology that will increase fixed costs by $225,500 per year, but will lower variable costs to 50 percent of sales. Units sold will remain unchanged. Prepare a budgeted inconte statement assuming Drake makes this investment. Round all amounts to the nearest dollar Drake Company Budgeted Income Statement Accounting numeric Field What is the new break-even point in units, assuming the investment is made in your computations, round the unit contribution margin to the nearest cent. Round your inal answer to the nearest Whole unit units