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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 $1,664,625 $34.50
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 $1,664,625 $34.50 Total variable cost 499,388 10.35 Contribution margin $ 1,165,237 $ 24.15 Total fixed cost 454,443 Operating income $ 710,794 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. 18,818 units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. 28,755 units 3. Compute the contribution margin ratio. If required, round your answer to nearest whole number. 70 % Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected. 112,000 4. For the projected level of sales, compute the margin of safety in units. 550,794 X units
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