1. Jester Company had unit contribution margin on $3.60 and fixed costs of $29,664. Income was $2,520. What was the margin of safety in units?

a. 630

b. 700

c. 8,940

d. 7,540

2. Loessing Company produced and sold 12,000 units last year with sales price of $45 per unit and unit variable cost of $20. Fixed costs totaled $250,000. In the coming year, Loessing expects price to decrease by ten percent. Neither unit variable cost nor fixed costs can be changed. If Loessing wants to maintain the same level of income, what will the new level of production need to be?

a. 12,000 units

b. 16,000 units

c. 12,195 units

d. 14,634 units