Bluff Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be $60,000$ units at $$5/$unit$.$ Below is a listing of estimated expenses:

A Canadian firm was contracted to sell the product and will receive a commission of $10\%$ of the sales price. No U$.$S$.$ home office expenses will be allocated to the new facility.

The margin of safety percentage for the company is: $($Round any intermediary percentage calculations to the nearest whole percent.$)$

A$.2\mathrm{.}62\%.$

B$.161\mathrm{.}76\%.$

C$.38\mathrm{.}24\%$

D$.3\mathrm{.}1\%.$Bluff Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be $60$ comma $000$ units at $ $5/$unit$.$ Below is a listing of estimated$$ expenses:

Category

Total Annual Expenses

$\%$ of Annual Expense that are Fixed

Materials

$ $80$ comma $000$

$20\%$

Labor

$ $70$ comma $000$

$20\%$

Overhead

$ $30$ comma $000$

$10\%$

$$Marketing$/$Admin

$ $50$ comma $000$

$60\%$

A Canadian firm was contracted to sell the product and will receive a commission of $10\%$ of the sales price. No U$.$S$.$ home office expenses will be allocated to the new facility.

The margin of safety percentage for the company$$ is: $($Round any intermediary percentage calculations to the nearest whole$$ percent.$)$

Question content area bottom

Part $1$

A$.$

$2\mathrm{.}62\%.$

B$.$

$161\mathrm{.}76\%.$

C$.$

$38\mathrm{.}24\%$

D$.$

$3\mathrm{.}1\%.$