Bedco makes high quality beds. Each bed sells for $1,000. They sold 750 beds in 2020 and 900 beds in 2019. Their costs for both years are presented below:

2019:

Cost of Goods Sold: $360,000

Operating Expenses: $220,000

Factory Rent: $60,000

2020:

Cost of Goods Sold: 300,000

Operating Expenses: 190,000

Factory Rent: 60,000

PART A: USING TARGET PROFIT ANALYSIS, DETERMINE THE BEDCOS REQUIRED SALES LEVELS (IN TERMS OF BOTH DOLLARS AND UNITS) IF THEY WANT TO ACHIEVE A TARGET PROFIT OF $1,100,000.

PART B: FOR 2020, DETERMINE THE COMPANYS MARGIN OF SAFETY AND MARGIN OF SAFETY PERCENTAGE.