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Egret corporation is a wholesaler that sells a single product and maintains a stable cost structure. Management has provided the following data for two months.

Egret corporation is a wholesaler that sells a single product and maintains a stable cost structure. Management has provided the following data for two months.

May June

Sales revenue $577,500 $1,155,000

Gross margin $364,700 $ 854,700

Net operating income (loss) $(39,300) $ 422,700

Selling price per unit $ 165 $ 165

Suppose the price remains the same. The best estimate of the margin of safety in July at the sales volume below is: Sales volume in July: 6,400 units.

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