The Frosty Corporation manufactures and sells snow rakes. The rakes sell for $20 each.

Information about the companys costs is as follows:

Variable manufacturing cost per unit- $6

Variable selling and administrative cost per unit- $2

Fixed manufacturing overhead per month- $300,000

Fixed selling and administrative cost per month- $600,000

1.Determine the companys monthly breakeven point in units

2. Determine the sales volume (in dollars) required for a monthly operating income of $1,200,000.

3. Compute the companys margin of safety if its current monthly sales level is $2,500,000