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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 $1,603,125
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 $1,603,125 Total variable cost 609,188 $28.50 10.83 Contribution margin $ 993,937 $ 17.67 Total fixed cost 670,107 Operating income $323,830 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. 37,923 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
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