Exercise $20\mathrm{.}10($Algo$)$ Computing Contribution Margin Ratio and Margin of Safety $($LO$20-4,$ LO$20-5)$

The following information relates to the only product sold by Mastrolia Manufacturing.

Sales price per unit $ $45$

Variable cost per unit $27$

Fixed costs per year $293,000$

a$.$ Compute the contribution margin ratio and the dollar sales volume required to break even.

b$.$ Assuming that the company sells $20,000$ units during the current year, compute the margin of safety $($in dollars$).$