Presto Company makes radios that sell for $25 each. For the coming year, management expects fixed costs to total $250,000 and variable costs to be $7.50 per unit.

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Compute the break-even point in dollars using the contribution margin (CM) ratio. (Round answer to 0 decimal places, e.g. 1,225.)

Break-even point

$

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Compute the margin of safety ratio assuming actual sales are $800,000. (Round margin of safety ratio to 2 decimal places, e.g. 10.50.)

Margin of safety

%

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Compute the sales dollars required to earn net income of $275,000.

Required sales

$

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