The management are also looking at alternative pricing strategies. They are considering reducing the price to $90 which they have been told by marketing consultants would enhance the levels of sales to 40,000 units. Whilst variable costs would decrease to $65 per unit due to discounts from suppliers of materials. Fixed overheads would increase by $40,000 required for additional advertising.

Required: (a) Calculate the breakeven point, in units and revenue

(b) the margin of safety