Maya Block manufactures a standard stone block for the building industry. The production capacity 120,000 standard blocks per year. The selling price per block is $1.80, variable costs are $0.50 per brick and fixed costs are $50,000 per year. Determine the following:

1. The break-even point in terms of output.

2. The margin of safety if sales amount to 90,000 bricks in the year. Formula: Margin of safety = actual sales break-even sales

3. Is the firm profitable?