Cayuga Company reports the following contribution margin income statement.

CAYUGA COMPANY

Contribution Margin Income Statement

For Year Ended December $31$

Required:

Compute break$-$even point in units.

Compute break$-$even point in sales dollars.

Assume Cayuga has a target income of $$161,000.$ What amount of sales $($in dollars$)$ is needed to produce this target income?

If Cayuga achieves its target income, what is its margin of safety $($in percent$)?$

Navigation:

Use the Open Excel in New Tab button to launch this question.

When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.

$\backslash$table$[[\backslash$Delta $,$A$,$B$,$C$],[1,,,],[2,$Cayuga Company reports the following contribution margin income statement.,$],[3,,,],[4,\{$

$\backslash$table$[[$CAYUGA COMPANY$],[$Contribution Margin Income Statement$],[$For Year Ended December $31]]\},],[5,],[6,],[7,$Sales $(10,700$ units at $$300$ each$),$$$3,210,000,],[8,$Variable costs $(10,700$ units at $$240$ each$),2,568,000,],[9,$Contribution margin,$642,000,],[10,$Fixed costs,$504,000,],[11,$Income,$$138,000,],[12],[13,$Units sold,$10,700,],[14,$Selling price per unit,$$300,],[15,$Variable cost per unit,$$240,],[16,$Target income,$$161,000,],[17],[18,$Required:,,$],[19,1.$ Compute break$-$even point in units, rounded to the nearest whole unit.,$\backslash$bar $($V$),$lunits$],[20,2.$ Compute break$-$even point in sales dollars.,E$,],[21,3.$ Assume Cayuga has a target income of $$161,000.$ What amount of$,,],[22,$sales $($in dollars$)$ is needed to produce this target income?,F$,],[23,4.$ If Cayuga achieves its target income, what is its margin of safety,,,$],[24,$rounded to the nearest whole percent?,F$,],[25,,,]]$