Question
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 $1,747,875
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 $1,747,875 $39.50 Total variable cost 489,405 11.06 Contribution margin $ 1,258,470 $28.44 Total fixed cost 499,193 Operating income $ 759,277 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. X units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. X units 3. Compute the contribution margin ratio. If required, round your answer to nearest whole number. 72% Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected. 115,200 4. For the projected level of sales, compute the margin of safety in units. X units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started