Exercise $3-41($Algo$)$ CVP and Margin of Safety $($LO $3-1,2)$

Golden Gate Novelties $($GGN$)$ sells souvenir key chains at the local airport. GGN charges $$27\mathrm{.}00$ per chain. The variable cost for a chain, including the wholesale cost of the chain, packaging, the commission paid to the airport operator, and so on$,$ is $$25\mathrm{.}40.$ The annual fixed cost for GGN is $$16,800.$

Required:

How many cases must Golden Gate Novelties sell every year to break even?

Note: Do not round intermediate calculations.

The owner of GGN believes that the company can sell $14,000$ chains a year. What is the margin of safety in terms of the number of chains?