i. Calculate the margin of safety (in %) for Sanafi Company.

ii. Assume that for a lower than usual demand, the sales of Sanafi Company has decreased by 5000 units. By how much the fixed cost must be reduced to, in order to maintain the current net income/profit?

2. Sanafi Company manufactures a single product. In the month of August, the company manufactured 13,000 units and sold all of them for a total of $845,000. Variable costs related to manufacturing is $11.50 and variable costs related to selling & admin is another $4. The total fixed expense for the company is $345,000