The answer to the second question.

Alfarah Company estimates that variable costs will be 50% of selling price per unit, and fixed costs will total 500,000 The selling price of the product is $5. Instructions 1. Compute the break-even point in (a) units and (b) dollars. 2. Prepare a CVP graph, assuming maximum sales of $3,200,000, (Note: Use $400,000 increments for sales and costs and 100,000 increments for units.) 3. Assuming actual sales are $2 million, compute the margin of safety in (a) dollars and (b)as ratio. - Variable costs: 50% of the selling price per unit - Fixed costs: $500,000 - Selling price per unit: $5 - Maximum sales: $3,200,000 - Actual sales: $2,000,000