The following information relates to the only product sold by Harper Company.

Sales price per unit$ 45

Variable cost per unit27

Fixed costs per year279,000

a. Compute the contribution margin ratio and the dollar sales volume required to break even.

b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).

a. contributions magin ratio ______%

break even sales dollars ______

b. Margin of safety ($) ______