Blended Service
	System
Sales	$3,020,000
Variable costs	1,812,000
Contribution margin	$1,208,000
Fixed costs	604,000
Net Income	$604,000
Operating leverage	2
if sales increased by $302,000 net income would increase by	20%
Using the margin of safety ratio, how large of a decline in sales could this option sustain before operating at a loss?
(Round margin of safety ratio to 2 decimal places, e.g. 0.25 and decline in sales to 0 decimal places, e.g. 125.)
Margin of safety ratio
Decline in sales		%