The controller of Hannibal Company prepared the following projected income statement:
|
Sales (5,000 units @ $15)
|
$75,000
|
|
Less: Variable costs
|
60,000
|
|
Contribution margin
|
$15,000
|
|
Less: Fixed costs
|
10,350
|
|
Operating income
|
$ 4,650
|
Required
1. Calculate the break-even number of units.
2. Calculate the break-even sales revenue.
3. Calculate the margin of safety in units.
4. Calculate the margin of safety in sales dollars.