Suppose Morrison Corp.'s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $16 per unit. 3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase? The contribution margin percentage is 60 % Requirement 2. Compute the selling price if variable costs are $16 per unit. Determine the formula used to calculate the selling price. Selling price = Variable costs per unit Contribution margin percentage ) The selling price is $ 40 Requirement 3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. Determine the formula to calculate the margin of safety in dollars. Budgeted (or actual) revenue Breakeven revenue Margin of safety in dollars = The margin of safety is 1900000 units and 47500