Clean and Bright Company makes 2 types of organic soaps: Original and Delicate. In the coming year, the company expects to sell 30,000 units of Original soaps and 15,000 units of Delicate soaps. Information on the two products is as follows:

Original Soap Delicate Soap

Price $12 $20

Variable cost per unit $4 $8

Total fixed cost is $127,960.

(i) Compute the breakeven point for Original and Delicate Soap in sales dollars.

(ii) Based on the answer in (i), calculate the margin of safety in dollars.

(iii) Though the company manages to keep the same amount of fixed costs next year, it expects that the variable cost will increase due to inflation, explain what would happen to the breakeven point.