Tensing Company’s projected profit for the coming year is as follows:
1. Compute the break-even point in units.
2. How many units must be sold to earn a profit of $450,000?
3. Compute the contribution margin ratio. Using that ratio, compute the additional profit that Tensing would earn if sales were $37,000 more than expected.
4. For the projected level of sales, compute the margin of safety in units.