Guthrie Industries manufactures and sells dog collars. The collars sell for $12 each. Information about the companys costs is as follows.

Variable manufacturing cost per unit	$	2
Variable selling and administrative cost per unit		1
Fixed manufacturing overhead per month	$	250,000
Fixed selling and administrative cost per month		200,000

a. Determine the company's monthly break-even point in units.

b. Determine the sales volume (in dollars) required for a monthly operating income of $900,000.

c. Compute the companys margin of safety if its current monthly sales level is $1,400,000.

d. Estimate the amount by which monthly operating income will increase if Guthrie anticipates a $60,000 increase in monthly sales volume.