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Crimson & Blue embroiders high quality hoodies for University of Kansas fans. Use its most recent...

Crimson & Blue embroiders high quality hoodies for University of Kansas fans. Use its most recent income statement to answer the following questions.

Sales Revenue ($50 per hoodie) $ 6,050

Cost of Goods Sold ($32 per hoodie) 3,872

Gross Margin 2,178

Salaries.   735

Advertising. 345

Shipping ($3 per hoodie). 363

Operating Income $735

  1. Determine Crimson & Blue’s break-even point in units (hoodies).
  2. What is Crimson & Blue’s contribution margin ratio?

  3. Briefly explain what margin of safety represents.

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