Q1: The controller of Hannibal Company prepared the following projected income statement: Sales (5,000 units @ $15) $75,000 Less: Variable costs 60,000 Contribution margin S15,000 Less: Fixed costs 10,350 Operating income $ 4,650 Required 1. Calculate the break-even number of units. 2. Calculate the break-even sales revenue. 3. Calculate the margin of safety in units. 4. Calculate the margin of safety in sales dollars.

Q1: The controller of Hannibal Company prepared the following projected income statement: Sales (5,000 units @ $15) $75,000 Less: Variable costs 60,000 Contribution margin $15,000 Less: Fixed costs 10,350 Operating income $ 4,650 Required 1. Calculate the break-even number of units. 2. Calculate the break-even sales revenue. 3. Calculate the margin of safety in units. 4. Calculate the margin of safety in sales dollars