Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,940,000 pages at a price of $0.06 each in the coming year. Product costs include: Direct materials $0.009 Direct labor $0.003 Variable overhead $0.001 Total fixed overhead $80,960 There is no variable selling expense; fixed selling and administrative expenses total $45,000. Required: In your computations that involve the contribution margin ratio, do not round the ratio.

1. Calculate the break-even point in units.

2680000 units

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

$

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

units

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

$

5. What if the total selling and administrative expenses are reduced to $29,960?

Recalculate the following:

a. Break-even point in 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

$