Question 7 (2 marks for each part) The following is Alsatia Corporation's contribution format income statement for last month:

Sales 1,400,000

Less: variable expenses 900,000

Contribution margin 500,000

Less: Fixed expenses 300,000

Net Income 200,000

The company has no beginning or ending inventories and produced and sold 10,000 units during the month.

Required:

a. What is the company's break-even in units?

b. If sales increase by 100 units, by how much should net income increase?

c. How many units would the company have to sell to attain target profits of $225,000?

d. What is the company's margin of safety in dollars?

1400000/10000=$140 per unit