CVP; margin of safety) Harry Potted grows corn in Nebraska. He currently sells his corn at $2.25 per bushel. Variable costs associated with growing and selling a bushel of corn is $1.80. Annual fixed costs are $74,250.

a. What is the break-even point in sales dollars and bushels of corn? If Potted’s farm is 1,200 acres, how many bushels must he produce per acre to break even?

b. If the business is currently producing and selling 180,000 bushels, what is the margin of safety in bushels, in dollars, and as a percentage?

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