Reference no: EM132649381

The Carla Vista Company sells sports decals that can be personalized with a player's name, a team name, and a jersey number for $7.00 each. Carla Vista's variable costs are the $2.70 it pays its supplier for each decal and $0.60 in operating costs to personalize and sell each decal.

The results of last month's operations are as follows:

Sales revenue                                   $14,000

Cost of goods sold                                5,400

Gross profit                                         8,600

Operating expenses                             4,382

Operating income                               $4,218

Contribution margin per unit                       3.7

Problem 1: What is Carla Vista's monthly breakeven point in units? In dollars?(Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to 0 decimal places, e.g. 25,000.)

Breakeven point 860 unit
Breakeven sale 6020

Problem 2: What is Carla Vista's margin of safety? (Round answers to 0 decimal places, e.g. 25,000.)