1. Southern & Company produces a single product and recently calculated their break-even point as shown. What would Southerns target margin of safety be in units and dollars if they required a $7,200 margin of safety?

Units sold60Sales price per unit$750.00Variable cost per unit$510.00Contribution margin per unit $240.00Fixed costs$4,800.00Break-even (in units) 20Contribution margin ratio32%Break-even (dollars)$15,000.00

Units sold60Sales price per unit$750.00Variable cost per unit$510.00Contribution margin per unit $240.00Fixed costs + margin of safety Break-even (in units) Contribution margin ratio32%Target margin of safety (in dollars)