Carla Vista Company makes radios that sell for $50 each. For the coming year, management expects fixed costs to total $163,530 and variable costs to be $35 per unit.

Compute the break-even point in dollars using the contribution margin (CM) ratio.

Break-even point

$

Compute the margin of safety ratio assuming actual sales are $790,000. (Round margin of safety ratio to 2 decimal places, e.g. 10.50.)

Margin of safety

%

Compute the sales dollars required to earn net income of $406,470.

Required sales

$