Sunland Company makes radios that sell for $50 each. For the coming year, management expects fixed costs to total $125,280 and variable costs to be $40 per unit.

(a)

	Your answer is correct.

Compute the break-even point in dollars using the contribution margin (CM) ratio.

Break-even point

$

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(b)

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Compute the margin of safety ratio assuming actual sales are $870,000. (Round margin of safety ratio to 2 decimal places, e.g. 10.50.)

Margin of safety

%

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(c)

Compute the sales dollars required to earn net income of $234,720.

Required sales

$