Mini-Exercise 12-5 (Algo) Breakeven analysis LO 12-9, 12-11

Current operating income for Bay Area Cycles Company is $28,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $112,000.

Required:

Calculate Bay Area Cycles breakeven point in units and total sales dollars.

Calculate Bay Area Cycles margin of safety and margin of safety ratio. Note : Round your percentage answer to nearest whole percent.