Stylo Company produces a single product. Their most recent data is shown below:

Current

Units sold 1 450

Sales price per unit $ 100

Variable cost per unit $ 50

Fixed costs $20 500

1. Calculate the current breakeven point in units and dollars.
2. Prepare a contribution margin income statement showing the company's profitability performance.
3. They have recently received the result of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. The company can also source a cheaper raw material, decreasing the unit raw material cost by 8%. Demonstrate how these changes will benefit the company.
4. What is the margin of safety in dollars, assuming projected sales are based on the new retail price.