Trendy Toes, Co., produces sports socks. The company has fixed costs of $95,000 and variable costs of $0.95 per package. Each package sells for $1.90.

• Requirements:
• Compute the contribution margin per package and the contribution margin ratio.
• Find the breakeven point in units and in dollars, using the contribution margin approach.
• Compute the company’s margin of safety if its current monthly sales level is $250,000.
• Compute the sales in units required to produce a net income of $200,000