9(A). Cartman Company makes a Cheezy-poofs that sells for $5 a bag. Each bag has a variable cost of $1. Cartman has a total fixed costs of $7,200. At budgeted sales of $30,000. What is the margin of safety (in percentage)?

9(B). ABC Corporation recently noticed an increase in its fixed cost. All other costs and

revenues were unchanged. What impact will this have on break-even point and the margin of safety (increase, decrease, or stay the same and why? feel free to make-up numbers to help explain why.

Breakeven: _________________ Why:_______________________________________________________________

Margin of Safety: _________________ Why:_______________________________________________________________