CVP Analysis and Cost Structure (Single Product). Riviera Incorporated produces flat panel televisions. The company has annual fixed costs totaling $10,000,000 and variable costs of $600 per unit. Each unit of product is sold for $1,000. Riviera expects to sell 70,000 units this year.

Required:

6. Find the margin of safety in sales dollars.

7. How much will operating profit change if fixed costs are 15 percent higher than anticipated? Would this increase in fixed