Melka Inc. sells a product for $80 per unit. The variable cost is $70 per unit, and fixed costs are $25,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $25,000.
Miller Inc. has sales of $1,000,000, and the break-even point in sales dollars is $800,000. Determine the company's margin of safety.