Last month, Willsted Company sold 450 units for \($25\) each. During the month, fixed costs were \($2,520\) and variable costs were \($7\) per unit.

Required:

1. Determine the unit contribution margin and contribution margin ratio.

2. Calculate the break-even point in units and sales dollars.

3. Compute Willsted’s margin of safety in units and as a percentage of sales.