ROK Company has provided you with the following information: Selling Price per Unit: $10 Variable Costs per Unit: $4 Fixed Costs: $3,600 Breakeven in Units: 600 1. Assume that the selling price is increased by 20% and fixed costs increase by $400. How many units must be sold to earn a profit of $5,600? (e.g. 5,000)

2. Using the original information above (ignore #1), what is the breakeven point in sales? (e.g. $10,000)

3. Using the information in #2 above, assume that actual (expected sales) are $20,000. What is the margin of safety in dollars? (e.e. $1,000)

4. Using the information above, what is the Margin of Safety Ratio? (e.g. 10%)