Glacial Company estimates that variable costs will be 63.2% of sales, and fixed costs will total $655,000. The selling price of the product is $3.90.

Compute the break-even point in (1) units and (2) dollars.

a. Break even sales __ units

b. Break even sales __ $$

Assuming actual sales are $2,115,000, compute the margin of safety in (1) dollars and (2) as a ratio.

a. Margin of safety __ $$

b. Margin of safety ratio (as percentage)