Question 3 (Cost-Volume-Profit Analysis/ 20 marks) AMC Company's projected profit for the coming year is as follows: Per Unit $20 Sales Less: Variable expenses Contribution margin Less: Fixed expenses Operating income Total $200,000 120,000 $80,000 64,000 16,000 Required (a) Compute the break-even point in units. (3 marks) (b) How many units must be sold to earn a profit of $30,000? (3 marks) (c) Compute the contribution margin ratio. Using that ratio, compute the additional profit that AMC Company would earn if sales were $25,000 more than expected. (2 marks) (d) Suppose AMC Company would like to earn operating income equal to 20 percent of sales revenue. How many units must be sold for this goal to be realized? Prepare an income statement to prove your answer. (10 marks) (e) For the projected level of sales, compute the margin of safety. (2 marks)