Question: Problem 1: (5 points) SMSA currently delivers packages for $10 each. During the month, units sold were 4500 units, fixed costs were $18,000 and variable

 Problem 1: (5 points) SMSA currently delivers packages for $10 each.

Problem 1: (5 points) SMSA currently delivers packages for $10 each. During the month, units sold were 4500 units, fixed costs were $18,000 and variable costs were 40% of sales. Instructions: 1. Compute the break-even point in sales dollars. (1 point) 2. Compute the sales required to earn net income of $ 42,000. (1.5 points) 3. Compute the margin of safety dollars. (1.5 points) 4. Compute the margin of safety ratio. (1 point)

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