1. 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	$3,150,000			$45.00
   Total variable cost	819,000			11.70
   Contribution margin	$2,331,000			$ 33.3
   Total fixed cost	819,000
   Operating income	$1,512,000

   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