Grab Ems prepares marketing plans for growing businesses. For $2021,$ budgeted revenues are $$4,875,000$ based on $750$ marketing plans at an average rate per plan of $$6,500.$ The company would like to achieve a margin of safety percentage of at least $25\%.$ The company $\text{'}$s current fixed costs are $$2,205,000$ and variable costs average $$3,000$ per marketing plan.

Required

$\backslash$table$[[$Budgeted sales quantity,$-,$Breakeven quantity,$=,$Margin of safety in units$],[750,-,,=,120]]$

Requirement $2.$ Which of the following changes would help Grab Ems achieve its desired margin of safety? a$.$ Average revenue per customer increases to $$7,900$; b$.$ Planned number of marketing plans prepared increases by $6\%$; c$.$ Grab Ems purchases new software that results in a $6\%$ increase to fixed costs but reduces variable costs by $12\%$ per marketing plan. $($Round all margin of safety percentages to the nearest whole percent, X$.$X$\%.$ Round breakeven units up to the next whole unit.$)$

First, calculate the current margin of safety percentage.

a$.$ The average revenue per customer increases to $$7,900.$

Grab Ems' breakeven number of units is now $$ plans and its margin of safety percentage is now $$ This change $$ help Grab Ems achieve its desired margin of safety of $25\%.$

b$.$ The planned number of marketing plans prepared increases by $6\%.$

Grab Ems' breakeven number of units is now $$ plans and it's margin of safety percentage is now $\%.$

This change $$ help Grab Ems achieve its desired margin of safety of $25\%.$

c$.$ Grab Ems purchases new software that results in a $6\%$ increase to fixed costs but reduces variable costs by $12\%$ per marketing plan.

Grab Ems' breakeven number of units is now $$ plans and its margin of safety percentage is now $\%.$

This change $$ help Grab Ems achieve its desired margin of safety of $25\%.$