A Canadian company that manufactures French doors for the American market has relied on quality and customer service to win over our neighbors. Unlike competitors, the return rate for defective products is virtually non-existent. In addition, the delivery time is 2 weeks while it is 6 weeks for its competitors. This last element allows customers to keep smaller stocks.

For the financial year ended June 30, 2010, the company sold 500,000 units for total sales of 42 million Canadian dollars. Variable production and operating costs were maintained at 55% of sales; these included freight and commission fees to sellers of 5% of sales. The total fixed costs break down as follows: 80% for production and 20% for operation (sales and administration). Finally, the operating result (before taxes) is 22% of sales for the year ended June 30, 20X10. As the company manufactures its doors on an order-by-order basis, it does not keep any inventory of finished products.

1. For the year ended June 30, 20X10: a) Calculate the breakeven point (breakeven point) in dollars. (5 points) b) Find the safety margin in dollars and percentages. (4 points) c) Determine the operating result (operating profit) in dollars. (4 points)