Expresso (Pty) Ltd sells hot and iced coffee beverages, and small snacks. The following is the previous months statement of profit or loss.

Revenue		$7,500
Cost of beverages and snacks	$2,500
Cost of napkins, straws etc.	700
Cost to rent cart	800
Employee wages	2,000	6,000
Pre-tax profit		1,500
Tax		525
After-tax profit		$ 975

Required

1.What was Expressos margin of safety in revenue for the month under review?

2.What was Expressos margin of safety percentage?

3.Suppose this months actual revenues are $8,000 and pre-tax profit is $2,000. What will the total cost be?