Comer Company produces and sells strings of colorful indoor$/$outdoor lights for holiday display to retailers for $$12\mathrm{.}27$ per string. The variable costs per string are as

follows:

Direct materials

$$1\mathrm{.}87$

Direct labor

$1\mathrm{.}70$

Variable factory overhead

$0\mathrm{.}57$

Variable selling expense

Fixed manufacturing cost totals $$464,142$ per year. Administrative cost $($all fixed$)$ totals $$376,248.$ Comer expects to sell $229,900$ strings of light next year.

Required:

Calculate the break$-$even point in units.

$x$ units

Calculate the margin of safety in units.

$x$ units

Calculate the margin of safety in dollars.

$x$

Conceptual Connection: Suppose Comer 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.$)$