A company produces gadgets with the following details:

• Selling price per unit: $25
• Variable cost per unit: $15
• Fixed costs: $50,000

Requirements:

1. Calculate the break-even point in units.
2. Determine the break-even point in sales dollars.
3. If the company wants to make a profit of $20,000, how many units must it sell?
4. Calculate the margin of safety in units if the company sells 6,000 units.
5. Determine the margin of safety percentage.