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Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct

Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year.
Unit variable cost is $21 (includes direct materials, direct labor, variable factory
overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed
factory overhead and fixed selling and administrative expense). Break-even units equal
2,000.
1. Calculate the margin of safety in terms of the number of units.
2. Calculate the margin of safety in terms of sales revenue.

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