Use the following information to answer the following 3 questions:
Spark Design Corporation had the following results last month:
$
Sales (15,000 units) $1,500,000
-VC
CM
-FC
OI
%
100%
$ 900,000
60%
$ 600,000
40%
$ 500,000
$ 100,000
2: If sales increase by $100,000 next month, by how much should OI increase?
A) $640,000
B) $100,000
C) $40,000
D) $1,600,000
3: What is the company's break-even in units?
A) 15,000
B) 12,500
C) 0
D) 22,500
4: What is the company's margin of safety in dollars?
A) $250,000
B) $600,000
C) $1,500,000
D) $100,000