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	$2,928,750			$35.50
Total variable cost	1,347,225			16.33
Contribution margin	$ 1,581,525			$ 19.17
Total fixed cost	1,347,225
Operating income	$ 234,300

Required:

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

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

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

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

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