CVP; margin of safety Farmer Ned wants to cash in on the increased demand for ethanol. Accordingly, he purchased a corn farm in Iowa. Ned believes his corn crop can be sold to an ethanol plant for $9.60 per bushel. Variable cost associated with growing and selling a bushel of corn is $7.60. Ned's annual fixed cost is $105,600. a. (1) What is the break-even point in sales dollars and bushels of corn? Break-even point in sales dollars $ Break-even in bushels of corn 506,880 52,800 bushels (2) If Ned's farm is 480 acres, how many bushels must he produce per acre to break even? 110 Bushels per acre b. If Ned actually produces 69,600 bushels, what is the margin of safety in bushels, in dollars, and as a percentage? Note: Round the margin of safety percentage to the nearest whole percentage point. Margin of safety in bushels 16,800 bushels Margin of safety in dollars $ 161,280 Margin of safety as a percentage X %