Question
Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $2,009,250 $28.50 Total variable cost 843,885 11.97 Contribution margin $
Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $2,009,250 $28.50 Total variable cost 843,885 11.97 Contribution margin $ 1,165,365 $ 16.53 Total fixed cost 818,568 Operating income $ 346,797 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. units 3. Compute the contribution margin ratio. If required, round your answer to nearest whole number. % Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected. $ 4. For the projected level of sales, compute the margin of safety in units.
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