Margin of Safety

Direct materials

$$1\mathrm{.}87$

Direct labor

Variable factory overhead

Variable selling expense

Fixed manufacturing cost totals $$421,056$ per year. Administrative cost $($all fixed$)$ totals $$311,040.$ Comer expects to sell $263,000$ strings of light next year.

Required:

Calculate the break$-$even point in units.

units

Calculate the margin of safety in units.

Junits

Calculate the margin of safety in dollars.

and to the margin of safety.$)$