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	$2,040,000			$24
Total variable cost	1,530,000			18
Contribution margin	$510,000			$6
Total fixed cost	380,400
Operating income	$129,600

Required:

1. Compute the break-even point in units. units

2. How many units must be sold to earn a profit of $240,000? units

3. Compute the contribution margin ratio. %

Using that ratio, 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