Para Docs prepares marketing plans for growing businesses. For $2020,$ budgeted revenues are $$2,400,000$ based on $600$ marketing plans at an average rate per plan of $$4,000.$

The company would like to achieve a margin of safety percentage of at least $25\%.$ The company's current fixed costs are $$756,000$ and variable costs average $$2,600$ per

marketing plan.

Requirement $1.$ Calculate Para Docs' breakeven point and margin of safety in units.

First, determine the formula used to calculate the breakeven point in units, then calculate the number of marketing plans that must be sold to break even.

Requirements

$($Consider each of the following separately.$)$

Calculate Para Docs' breakeven point and margin of safety in units.

Which of the following changes would help Para Docs achieve its desired

margin of safety?

a$.$ The average revenue per customer increases to $$4,700.$

b$.$ The planned number of marketing plans prepared increases by $4\%.$

c$.$ Para Docs purchases new software that results in a $$56,000$ increase to

fixed costs but reduces variable costs by $$320$ per marketing plan.