Margin of Safety Comer Company produces and sells strings of colorful Indoor/outdoor lights for holiday display to retailers for $11.70 per string. The variable costs per string are as follows: $1.87 Direct materials Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $481,950 per year. Administrative cost (all fixed) totals $387.702. Comer expects to sell 216,700 strings of light next year. Required: 1. Calculate the break-even point in units, units 2. Calculate the margin of safety in units units 3. Calculate the margin of safety in dollars. 4. Conceptual Connection: Suppose Comer actually experiences a price decrease next year while all other costs and the number of units sold remain the same. Would this increase or decrease risk for the company? (Hint: Consider what would happen to the number of break-even units Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Deluxe Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Deluxe Regular Activity Cost Setups Number of setups 300 200 Machining Machine hours Engineering $1,850,000 56,000,000 15,000,000 200,000 100,000 50,000 100,000 Engineering hours Packing orders 300,000 100,000 400,000 Packing Required: 1. Calculate the overhead rates for each activity. If required, carry your answers out to the nearest cent Setups $ 3,700 per setup Machining 5 140 per machine hour