CM Income Statement Sales (9,600 Units @ 225/Unit) $2,160,000 Variable Costs (9,600 Units @ 180/Unit) 1,728,000 CM 432,000 Fixed Costs 324,000 Net Income 108,000 I 1. What is SMF's break-even point in units? 2. What is SMF's break-even point in dollars? 3. What amount of dollar sales is needed for SMF to achieve a target pretax income of $162,000 for FY 2018? 4. If this target is achieved, what is SMF's margin of safety? 5. If SMF raised its selling price to $240/unit, compute its: a. CM/unit 2. CM ratio 3. Break-even point in units 4. Break-even point in dollars 6. SMF's management team decides that increasing marketing costs by $150,000 will result in a sales increase of 5,000 units. Prepare a forecasted CM income statement for 2018 if the company incurs the additional marketing costs.