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Please help!! Compute break-even point in units. Review 22-4. Wales Company makes radios...

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Accounting

Please help!! Compute break-even point in units.
Review 22-4. Wales Company makes radios that sell for $30 each. For the coming year, management expects fixed costs to total $200,000 and variable costs to be $20 per unit.
(a) Compute the break-even point in dollars using the contribution margin (CM) ratio.
(b) Compute the margin of safety percentage assuming actual sales are $750,000.
(c) Compute the sales required in dollars to earn net income of $120,000.
Unit Selling Price - Unit Variable Costs = Contribution Margin Per Unit
$30-$20=$10
Contribution Margin per Unit / Unit Selling Price = Contribution Margin Ratio
Fixed Cost / Contribution Margin per Unit = Break-even Point in Units
Fixed Costs ?? Contribution Margin Ratio = Break-even Point in Dollars
Actual (Expected) Sales - Break-Even Sales = Margin of Safety in Dollars
Margin of Safety in Dollars / Actual (Expected) Sales = Margin of Safety Ratio
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