Voltar Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for the most recent year is given below:

a. Compute the company's CM ratio_____, and variable expense ratio_______Compute the company's break even point in both units_____ and sales dollars_____. b. Assume that sales increase by $400,000 next year. If cost behavior patterns remain unchanged, the company's net operating income will increase_____. c. Refer to the original data. Assume that next year management wants the company to earn a profit of at least $90,000. The company will have to sell ____units to meet this target profit? d. Refer to the original data. Compute the company's margin of safety in both dollar_____ and percentage _____.

Total Sales (20,000 units). Variable expenses Contribution margin Fixed expenses Net operating income. $1,200,000 900,000 300,000 240,000 Per Unit Percent of Sales $60 100% 45 ? % $15 ? % $ 60,000