Jackson Inc. began business in 2020, and its sales in 2020 were 60,000 64-GB flash drives. The selling price per flash drive was $20. Variable cost per unit was $14. Annual fixed costs were $288,000

1. What is the companys margin of safety (in percent) based on the sales of 60,000 flash drives?

2. Assume that there is no change in fixed costs. What will be the expected net income if this company has the sales revenue of $2,500,000?