Bandaleria Company's projected profit for the coming year is as follows:

Required:
1. Compute the break-even point in units.
2. How many units must be sold to earn a profit of $1,600,000?
3. Compute the contribution margin ratio. Using that ratio, compute the additional profit that Bandaleria would earn if sales were $125,000 more than expected.
4. For the projected level of sales, compute the margin of safety in units.

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Per Unit Total $50 30 $20 Sales $6,200,000 3,720,000 Less: Variable expenses Contribution margin Less: Fixed expenses Operating income 2,480000 1,792,000 $ 688,000