Answer the following question: (Show all work and steps)

Dr. Keefe performs a certain procedure for $400.00. The fixed costs are $8,000 and variable costs are $200.00 per procedure.

1. What is the margin of safety in units assuming the procedure is performed 200 times?

a) 140 units

b) 130 units

c) 160 units

d) 200 units

2. What is the budgeted revenue assuming the procedure is performed 200 times?

3. What is the budgeted contribution margin assuming the procedure is performed 200 times?

4. What is the margin of safety assuming the procedure is performed 200 times?

5. What is the margin of safety assuming 100 procedures are performed?