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Determine break-even point and analyze margin of safety. Item Amount Selling price per unit $50 Variable cost per unit $30 Fixed costs $150,000 Expected sales

Determine break-even point and analyze margin of safety.

Item

Amount

Selling price per unit

$50

Variable cost per unit

$30

Fixed costs

$150,000

Expected sales volume

10,000 units

Requirements:

Calculate the contribution margin per unit and total contribution margin ratio.

Determine the break-even point in units and sales dollars.

Analyze the margin of safety and discuss its implications for the service industry.

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