Data concerning ABC Corporation's single product appear below:

Selling Price 160 Per unit

Variable expenses 41 Per unit

Contribution Margin 119 Per unit

Fixed expenses are $892,500 per month.

The company is currently selling 9,000 units per month.

Required:

a. Calculate the breakeven point in units and in revenue for ABC Corp.

b. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $15 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $85,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. What should be the overall effect on the company's monthly net operating income of this change? Show your work

c. What is the margin of safety percentage for ABC corporation? Please explain what this indicator suggest.

d. Please calculate the targeted sales volume and revenue if ABC seeks to achieve a target profit of 119,000