Question: 3 - 2 9 . CVP ANALYSIS, MARGIN OF SAFETY. Suppose Morrison Corp. s breakeven point is revenues of $ 1 , 1 0 0

3-29. CVP ANALYSIS, MARGIN OF SAFETY. Suppose Morrison Corp.s breakeven point is revenues of $1,100,000. Fixed costs are $660,000.
Required
Compute the contribution margin percentage.
Compute the selling price if variable costs are $16 per unit.
Suppose 75,000 units are sold. Compute the margin of safety in units and dollars.
What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?

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