Question 2 (6 Marks) Required: ERE Compute the break-even point in sales using the contribution margin (CM) ratio Compute the margin of safety ratio assuming actual sales are 1,200,000. Compute the sales required to eam a net income of 210,000 45 LG Company manufactures radios that sell for 645 each. For the coming year, management expects fixed costs to total 330,000 and variable costs to be 27 per unit. ------ JOANNEN PANZANARENDERINKINIAI M FORM CEFEREEEEEEEE ................... REPRENAD WHEREFFEN WHI ----------------****** *************ENGAN --------------------------------------------------- --------------------------- ------------ ---------- ------------------------------------ -------------ANTI ----------------------------------------- KMKM ------------- MERCE INTIMINTIMI MOMONIMUME THE ---------- -------------------------------- S ------------------------------ WINNIN ***** ...... *------- TREME --------------------------- * MMMMM IRENSEKTEE ******* ******* --------*** ---------

Question 2 ( 6 Marks) Required: kequired: Compuse the break-even point in sales using the contribution margin (CM) ratio. b. Compute the margin of safety ratio assuming actual sales are 61,200,000. c. Compute the sples required to earn a net income of &210,000. LG Company manufactures radios that sell for 648 each. For the coming year, management expects fixed costs to total 330,000 and variablo costs to be 627 per unit