The following monthly data in contribution format are available for the MN Co. and its only product:

	Total	Per Unit
Sales.	$83,700	$279
Variable expenses.	32,700	109
Contribution margin	51,000	$170
Fixed expenses.	40,000
Net operating income.	$11,000

The Company is currently selling 300 units of product per month.

The Company is currently selling 300 units of product per month.

A - What is the current Margin of Safety for the MN Co.?

B - Management wants to increase sales and feels this can be done by cutting the unit selling price by $22 and increasing the advertising budget by $20,000 per month. Management believes that these actions will increase unit sales by 50%. Should these changes be made?

C - Management is contemplating the use of plastic gearing rather than metal gearing in its product. This change would reduce variable expenses by $18 per unit. The company's sales manager predicts that this would reduce the overall quality of the product and thus would result in a decline in sales to a level of 250 units per month. Should this change be made?

D- Management wants to reach a target profit margin equals to 25% of sales. How many units the MN Co. must produce and sell to achieve this target?