Budgeting: Break Even Analysis (Tutorial) Q1. Following is the contribution margin income statement of a single product company: Total Per Unit Sales RM 1,200,000 RM 80 Less Variable expenses RM 840,000 RM 56 Contribution margin RM 360,000 RM 24 Less fixed expenses RM 300,000 Net operating income RM 60,000 Required: (a) Calculate break-even point in units and dollars. (b) What is the contribution margin at break-even point? (c) Compute the number of units to be sold to earn a profit of RM 36,000. (d) Compute the margin of safety using the data. (e) Compute CM ratio. Compute the expected increase in monthly net operating income if sales increase by RM 160,000 and fixed expenses do not change.