Super Papers prepares marketing plans for growing businesses. For 2020, budgeted revenues are $800,000 based on 400 marketing plans at an average rate per plan of $2,000. The company would like to achieve a margin of safety percentage of at least 30%. The company's current fixed costs are $150,000 and variable costs average $1,500 per marketing plan. Read the requirements. Requirement 1. Calculate Super Papers' 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. $ Fixed costs 150,000 Contribution margin per unit = Breakeven number of units 500 300 Now, determine the formula used to calculate the margin of safety in units, then calculate the result. Budgeted sales quantity 400 Breakeven quantity Margin of safety in units 300 = 100 Requirement 2. Which of the following changes would help Super Papers achieve its desired margin of safety? a. Average revenue per customer increases to $2,700; b. Planned number of marketing plans prepared increases by 8%; c. Super Papers purchases new software that results in a $57,000% increase to fixed costs but reduces variable costs by $340% per marketing plan. (Round all margin of safety percentages to the nearest whole percent, X%. Round breakeven units up to the next whole unit.) First, calculate the current margin of safety percentage. $ Margin of safety in dollars 200,000 Budgeted revenues 800,000 = Margin of safety percentage 25 % Requirements - a. The average revenue per customer increases to $2,700. (Consider each of the following separately.) Super Papers' breakeven number of units is now This change will 150 plans and its margin of safety percentage is now help Super Papers achieve its desired margin of safety of 30%. 63 %. 1. Calculate Super Papers' breakeven point and margin of safety in units. Help me solve this Etext pages Get more help - 2. Which of the following changes would help Super Papers achieve its desired margin of safety? a. The average revenue per customer increases to $2,700. b. The planned number of marketing plans prepared increases by 8%. c. Super Papers purchases new software that results in a $57,000 increase to fixed costs but reduces variable costs by $340 per marketing plan. Print Done Clear all Final check