StaySafe Company produces one security door model. A partially complete table of its costs follows:

Required:

1. Complete the table.

2. StaySafe sells its doors for \($200\) each. Prepare a contribution margin income statement for each of the three production levels in the table.

3. Based on these three statements (and without any additional calculations), estimate Stay- Safe’s break-even point in units.

4. Calculate StaySafe’s break-even point in number of units and in sales dollars.

5. Assume StaySafe sold 600 doors last year. Without performing any calculations, determine whether it earned a profit last year.

6. Calculate the number of doors that StaySafe must sell to earn a \($10,000\) profit.

7. Calculate StaySafe’s degree of operating leverage if it sells 700 doors.

8. Using the degree of operating leverage, calculate the change in StaySafe’s profit if sales are 20 percent more than expected. (Assume costs did not change.)

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Number of doors produced and sold 400 500 700 Total costs Variable costs $30,000 $ ? Fixed costs per year 65,000 ? Total costs 95,000 ? Cost per unit Variable cost per unit Fixed cost per unit ? ? Total cost per unit ? 222 ??? ??? $ ?