A company manufactures birdcages. They are considering modifying their operations by adopting a new machine that will replace some of their direct labour costs and eliminate the need for one of their plant supervisors. The current results, and anticipated results if the changes are adopted are as follows: Current Results $25 Proposed change $25 10 Selling price per unit Variable Costs per unit: Manufacturing Selling and admin Fixed costs: Manufacturing Selling and admin 2 2 $10,000 2,000 $14,000 2,000 Assume that sales and production are equal. At what volume is the company indifferent between the current situation and the proposed changes? Show your work. Sales 4,000 units Sales price $60 per unit Variable cost $18 per unit Fixed costs $42,000 If the company wants its margin of safety to equal $35,000 next year, all other factors remaining the same, how many units will it need to sell? 1,000 units 1,583 units 833 units 1,833 units