Ciganda Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $16.34 per string. The variable costs per string are as follows:

Line Item Description	Cost
Direct materials	$2.90
Direct labor	1.70
Variable factory overhead	0.48
Variable selling expense	0.42

Fixed manufacturing cost totals $675,332 per year. Administrative cost (all fixed) totals $579,940. The company expects to sell 133,400 strings of light next year.

Required:

1. Calculate the break-even point in units. fill in the blank

2. Calculate the margin of safety in units. fill in the blank

3. Calculate the margin of safety in dollars. fill in the blank

4. Conceptual Connection: Suppose Ciganda actually experiences a price decrease next year while all other costs and the number of units sold remain the same. Would this increase or decrease risk for the company? (Hint: Consider what would happen to the number of break-even units and to the margin of safety.)