Q.2 Break-Even Point, Targeted Profit, Margin of Safety Cutlass Company's projected profit for the coming year is as follows: Per Unit $20 Total Sales S200,000 Less: Variable expenses Contribution margin Less: Fixed expenses Operating income Required: 120,000 S 80,000 64,000 S 16,000 12 $8 i. Compute the break-even point in units. ii. How many units must be sold to earn a profit of $30,000? Compute the contribution margin ratio. Using that ratio, compute the additional profit that Cutlass would earn if sales were $25,000 more than expected. 111. jv. For the projected level of sales, compute the margin of safety.