ABC Manufacturing produces a single product with the following cost information:

• Fixed costs per month: $80,000
• Variable cost per unit: $30
• Selling price per unit: $100

Requirements:

1. Calculate the breakeven point in units and dollars for ABC Manufacturing.
2. Discuss how changes in fixed costs affect the breakeven point.
3. Analyze the margin of safety for ABC Manufacturing based on current sales.
4. Evaluate the impact of a 10% increase in selling price on profitability.
5. Recommend cost reduction strategies for ABC Manufacturing based on cost behavior analysis.