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	$1,255,625			$24.50
Total variable cost	577,588			11.27
Contribution margin	$ 678,037			$ 13.23
Total fixed cost	577,588
Operating income	$ 100,449

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