Current operating income for Bay Area Cycles Co. is $54,000. Selling price per unit is $100, the contribution margin ratio is 30%, and fixed expense is $216,000.

Required:

1. Calculate Bay Area Cycles breakeven point in units and total sales dollars.

I know that units are 7,200 and the dollars are 720,000

2. Calculate Bay Area Cycles margin of safety and margin of safety ratio.

I do not know how to get the margin of safety here.