Pringle company sells a single product. The company’s sales and expenses for a recent month follows;
| Total | Per Unit | |
| Sales | $600,000.00 | $40.00 |
| less Variable Expenses | $420,000.00 | $28.00 |
| contribution margin | $180,000.00 | $12.00 |
| less fixed expenses | $150,000.00 | |
| net operating income | $30,000.00 |
Required:
A: What is the monthly break even point in units sold and in sales dollars?
B: Without resorting to computations, what is the total contribution margin at the break even point?
C: How many units would have to be sold each month to earn a minimum target profit of $ 18,000? Use the contribution
margin method. Verify your answer by preparing a contribution margin income statement at the target level of sales.
D: Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms
Break down each step and show your work !!!