# Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company’s projected profit for the coming year is as follows: Total Per Unit Sales $1,407,000 $28.00

Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company’s projected profit for the coming year is as follows: Total Per Unit Sales $1,407,000 $28.00 Total variable cost 590,940 11.76 Contribution margin $ 816,060 $ 16.24 Total fixed cost 685,490 Operating income $ 130,570 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. units 3. Compute the contribution margin ratio. If required, round your answer to nearest whole number. % Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected. $ 4. For the projected level of sales, compute the margin of safety in units. units