Exercise 3-11A (Algo) Margin of safety LO 3-4

Fanning Company makes a product that sells for $35 per unit. The company pays $13 per unit for the variable costs of the product and incurs annual fixed costs of $206,800. Fanning expects to sell 22,800 units of product.

Required

Determine Fannings margin of safety expressed as a percentage.(Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45))

\begin{tabular}{|l|l|} \hline Margin of safety & \\ \hline \end{tabular}