Raveen Products sells camping equipment. One of the company's products, a camp lantern, sells for $100 per unit. They managed to sell 10,000 lanterns per month. Variable expenses are $65 per lantern, and fixed expenses associated with the lantern total $140,000 per month.

Required:

1. Compute the company's break-even point in number of lanterns.
2. Compute the company's break-even point in total sales dollars.
3. Compute the company's Margin of Safety in sales dollar.
4. Compute the company's Margin of Safety in percentage.
5. If the variable expenses per lantern increase as a percentage of the selling price, Will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.)