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

Dupli$-$Pro Copy Shop provides photocopying service. Next year, Dupli$-$Pro estimates it will copy $2,800,000$ pages at a price of $$0\mathrm{.}08$ each in the coming year. Product costs include:

Direct materials

$$0\mathrm{.}015$

$$0\mathrm{.}004$

$$0\mathrm{.}001$

$$80,000$

Direct labor

Variable overhead

Total fixed overhead

There is no variable selling expense; fixed selling and administrative expenses total $$46,000.$

$5.$ What if the total selling and administrative expenses are reduced to $$38,800?$ Recalculate the following:

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

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

$$ units

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

$ $$

$$ units

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

$