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

a. Determine the company’s monthly break-even point in units.
b. Determine the sales volume (in dollars) required for a monthly operating income of $900,000.

c. Compute the company’s margin of safety if its current monthly sales level is $1,400,000.

d. Estimate the amount by which monthly operating income will increase if Guthrie anticipates a $60,000 increase in monthly sales volume.

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Variable manufacturing cost per unit Variable selling and administrative cost per unit Fixed manufacturing overhead per month. Fixed selling and administrative cost per month. to 2 1 $250,000 200,000