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

Currents

unit solds. 1450

sales price per unit. $100

variable cost per unit. $50

fixed cost $20,500

Required:

a) Calculate the current breakeven point in units and dollars

b) Prepare a contribution margin income statement showing the company's profitability performance.

c) 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

d) What is the margin of safety in dollars, assuming projected sales are based on the new retail price.