Guthrie Industries manufactures and sells dog collars. The collars sell for $12 each. Information about the company's costs is as follows:

Variable manufacturing cost per unit	$ 2
Variable selling and administrative cost per unit	1
Fixed manufacturing overhead per month	$ 257,200
Fixed selling and administrative cost per month	203,600

Required:

1. Determine the company's monthly break-even point in units.
2. Determine the sales volume (in dollars) required for a monthly operating income of $924,000
3. Compute the company's margin of safety if its current monthly sales level is $1,460,000.
4. Estimate the amount by which monthly operating income will increase if Guthrie anticipates a $66,000 increase in monthly sales volume.

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