Problem 4-40 Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company's projected profit for the coming year is as follows: Total S2,040,000 1,530,000 S 510,000 Per Unit $24 18 s 6 Sales Total variable cost Contribution margin Total fixed cost 380,400 Operating income $ 129,600 Required: I. Compute the break-even point in units. 2. How many units must be sold to earn a profit of $240,000? (Continued) Compute the contribution margin ratio. Using that ratio, compute the additional Khumbu would earn if sales were $160,000 more than expected For the projected level of sales, compute the margin of safety in units. 3. proit th 4. Requirement 5: How many units must be sold for the company to earn after-tax operating income of $200,000, income tax rate is 20%