The Stafford Company sells sports decals that can be personalized with a player's name, a team name, and a jersey number for $6 each. Stafford buys the decals from a supplier for $2.50 each and spends an additional $0.50 in variable operating costs per decal. The results of last month's operations are as follows:

Sales revenue .......................... $18,000

Cost of goods sold ...................... 7,500

Gross profit ............................. 10,500

Operating expenses ..................... 3,990

Operating income ...................... $6,510

Required

a. What is Stafford's monthly breakeven point in units? In dollars?

b. What is Stafford's margin of safety?