1. Evan's Electronics Boutique sells a digital camera. The following information was reported for the digital camera last month:

Sales	$	17,600
Variable expenses		9,680
Contribution margin		7,920
Fixed expenses		3,600
Net operating income	$	4,320

Evan's margin of safety in dollars and percentage are closest to:

2.

Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.

Sales (8,800 units)	$	528,000
Variable expenses		290,400
Contribution margin		237,600
Fixed expenses		211,700
Net operating income	$	25,900

If the company sells 9,200 units, its net operating income should be closest to: