The Cumberland Company provides the following information:

Break-Even in Units and Sales Dollars, Margin of Safety

Drake Company produces a single product. Last year's income statement is as follows:

Sales (18,000 units)	$1,083,600
Less: Variable costs	723,600
Contribution margin	$360,000
Less: Fixed costs	273,000
Operating income	$87,000

Required:

1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar.

What is the variable cost per unit for Cumberland?

Break-even units		units
Break-even dollars	$

2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar. $