< eBook Break-Even, After-Tax Target Income, Margin of Safety, Operating Leverage Rahm Company produces a single product. The projected income statement for the coming year, based on sales of 160,000 units, is as follows: Sales $2,000,000 Less: Variable costs 1,400,000 Contribution margin $600,000 Less: Fixed costs. 450,000 Operating income Required: $150,000 1. Compute the unit contribution margin and the units that must be sold to break even. Round your answer for the unit contribution margin to two decimals, if necessary. Unit contribution margin Break-even units 3.75 120,000 units Suppose that 10,000 units are sold above the break-even point. What is the profit? $ 37,500 above break-even 2. Compute the contribution margin ratio and the break-even point in dollars. Round your answer for the contribution margin ratio to two decimals, if necessary. (Express a decimal-based amount rather than a whole percent.) Contribution margin ratio 0.3 Check My Work 3 more Check My Work uses remaining. Save and Exit Submit Assignment for Grading