Break$-$Even Units and Sales Revenue: Margin of Safety

There is no variable selling expense; fixed selling and administrative expenses total $$42,000.$

Required:

In your computations that involve the contribution margin ratio, do not round the ratio.

Calculate the break$-$even point in units.

units

Calculate the break$-$even point in sales revenue.

$

Calculate the margin of safety in units for the coming year.

units

Calculate the margin of safety in sales revenue for the coming year.

$

What if the total selling and administrative expenses are reduced to $$26,490?$ Recalculate the following:

a$.$ Break$-$even point in units

units

b$.$ Break$-$even point in sales revenue

c$.$ Margin of safety in units for the coming year

units

d$.$ Margin of safety in sales revenue for the coming year