The Robinson Company sells sports decals that can be personalized with a player’s name, a team name, and a jersey number for \($5\) each. Robinson buys the decals from a supplier for \($1.50\) each and spends an additional \($0.50\) in variable operating costs per decal. The results of last month’s operations are as follows:

Required

a. What is Robinson’s monthly breakeven point in units? In dollars?

b. What is Robinson’s margin of safety?

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Sales revenue Cost of goods sold Gross profit Operating expenses Operating income $10,000 3,000 7,000 2,500 $ 4,500