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Titan sells sports decals that can be personalized with a player's name, a team name, and a jersey number for $5 each. Titan buys the

Titan sells sports decals that can be personalized with a player's name, a team name, and a jersey number for $5 each. Titan buys the licensed decals from a supplier for $1.25 each and spends an additional $0.75 in variable operating costs per decal. The results of last month's operations are as follows:

Sales revenue

$10,000

Cost of goods sold

2,500

Gross profit

7,500

Operating expenses

3,000

Operating income

$4,500

Required:

a. What is Titan's monthly breakeven point in units? In dollars?

b. What is Titan's margin of safety (both units and dollars)?

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