Margin of Safety

Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $16.82 per string. The variable costs per string are as follows:

Direct materials	$1.87
Direct labor	1.70
Variable factory overhead	0.57
Variable selling expense	0.42

Fixed manufacturing cost totals $757,668 per year. Administrative cost (all fixed) totals $659,588. Comer expects to sell 195,900 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. $