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	$2,030,000			$40.00
Total variable cost	568,400			11.20
Contribution margin	$ 1,461,600			$ 28.8
Total fixed cost	539,980
Operating income	$ 921,620

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