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

Sales price per unit

$

45

Variable cost per unit

27

Fixed costs per year

299,000

a.

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

Contribution margin ratio		%
Break even sales dollars

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