Presto Company makes radios that sell for $25 each. For the coming year, management expects fixed costs to total $312,700 and variable costs to be $10.75 per unit.

1.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

2.Compute the margin of safety ratio assuming actual sales are $842,000. (Round margin of safety ratio to 2 decimal places, e.g. 10.50.)

Margin of safety

3.Compute the sales dollars required to earn net income of $170,375.

Required sales