Question: Ewing Computers makes and sells circuit boards. Each circuit board sells for an average of $225 and has a variable cost of $165. The company

Ewing Computers makes and sells circuit boards. Each circuit board sells for an average of $225 and has a variable cost of $165. The company experiences total fixed costs of $210,000. For 2021, the company has budgeted to sell 5,000 circuit boards.

Required:

Calculate the margin of safety in units, revenue dollars and percentage.
Variable costs per unit have increased by 5% while sales revenue per unit has decreased by 3%. Calculate the new margin of safety in units, revenue dollars and percentage.

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