Question 3 Blossom, Inc. produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $330 and the fixed cost per month is $51,523. For November, the company expects to sell 123 pairs of speakers.

Calculate expected profit.

Expected profit		$

Calculate the contribution margin ratio, Break-even sales, Expected sales and margin of safety in dollars. (Round contribution margin ratio and intermediate calculations to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

Contribution margin ratio
Break-even sales		$
Expected sales		$
Margin of safety		$