22-3C Koz Company makes radios that sell for $50 each. For the coming year,

management expects fixed costs to total $240,000 and variable costs to be $15 per unit.

1. Compute the break-even point in dollars using the contribution margin (CM) ratio.
2. Compute the margin of safety ratio assuming actual sales are $820,000.
3. Compute the sales dollars required to earn net income of $160,000.