Gary Finch is evaluating a business opportunity to sell grooming kits at dog shows. Gary can buy the grooming kits at a wholesale cost of $30 per set. He plans to sell the grooming kits for $80 per set. He estimates fixed costs such as travel costs, booth rental cost, and lodging to be $900 per dog show.

For this assessment, complete the following tasks:

1. • Determine the number of grooming kits Gary must sell per show to break even.
   • Assume Gary wants to earn a profit of $1,100 per show.
   1. • Determine the sales volume in units necessary to earn the desired profit.
      • Determine the sales volume in dollars necessary to earn the desired profit.
      • Using the contribution margin format, prepare an income statement (condensed version to confirm your answers to parts a. and b.).
   • Determine the margin of safety between the sales volume at the break-even point and the sales volume required to earn the desired profit.

Determine the margin of safety in both sales dollars, units, and as a percentage