The following is Arkadia Corporation's contribution format income statement for last month:

Sales $.......................$ $$1,200,000$

Less variable expenses $......800,000$

Contribution margin $.........400,000$

Less fixed expenses $.........300,000$

Net income $..................$ $ $100,000$

The company has no beginning or ending inventories and produced and sold $20,000$ units during the month.

Required:

What is the company's contribution margin ratio?

b$.$ What is the company's break$-$even in units?

c$.$ If sales increase by $100$ units, by how much should net income increase?

d$.$ How many units would the company have to sell to attain target profits of $$125,000?$

e$.$ What is the company's margin of safety in dollars?