Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1. Compute the contribution margin percentage. Q2. Compute the selling price if variable costs are $16...

Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000.

Q1. Compute the contribution margin percentage.

Q2. Compute the selling price if variable costs are $16 per unit.

Q3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars.

Q4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?