Do It! Review 18-5 (Part Level Submission)

Presto Company makes radios that sell for $25each. For the coming year, management expects fixed costs to total $250,000and variable costs at $7.50per unit.

Answer:

Break-even point $ 357143

Compute the margin of safety ratio assuming actual sales are $800,000.(Round margin of safety ratio to 2 decimal places, e.g. 10.50.)

Margin of safety________%