(Solved by Humans)-Problem 4-40 Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Company’s...

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Problem 4-40        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 $2,040,000 $24 Total variable cost 1,530,000 18 Contribution margin $   510,000 $  6 Total fixed cost 380,400   Operating income $   129,600     Required: 1.       Compute the break-even point in units. 2.       How many units must be sold to earn a profit of $240,000?       (Continued)                                                                                          3.       Compute the contribution margin ratio. Using that ratio, 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.   OBJECTIVE