Cost Volume Profit Problem Below:

Delight Bakery sells one desert, an extra-large extreme chocolate chip cupcake with a selling price of $10 and variable costs of $3 per unit. The bakery's monthly fixed expense is $5,000.

a) Compute the break-even point in units and dollars.

b) How many cupcakes would Delight Bakery needs to sell to earn a target profit of $2,000?

c) Compute the Margin of Safety in dollars and percentage.