Margin of Safety Comer Company produces and sets strings of colorful indoor/outdoor lights for holiday display to retailers for $10.58 per string. The variable costs per string areas follows: Direct materials 51.87 Direct labor 1.70 Variable factory overhead 0.52 Variable selling expense 0.42 Fixed manufacturing cost totals $450,2% per year. Administrative cont (al fired) total $320,204. Comer expects to sell 232,000 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 and to the margin of safety.) Increase Decrease