Crimson & Blue embroiders high quality hoodies for University of Kansas fans. Use its most recent income statement to answer the following questions.

Sales Revenue ($50 per hoodie) $ 6,050

Cost of Goods Sold ($32 per hoodie) 3,872

Gross Margin 2,178

Salaries. 735

Advertising. 345

Shipping ($3 per hoodie). 363

Operating Income $735

1. Determine Crimson & Blues break-even point in units (hoodies).
2. What is Crimson & Blues contribution margin ratio?

3. Briefly explain what margin of safety represents.