James House is planning on starting a cleaning services business but has not decided whether he should focus on residential clients or commercial clients. His estimates of revenue, variable expenses, and fixed expenses are shown below.

	Residential			Commercial
Revenue	$	115	per hour	$	125	per hour
Variable expense	$	69	per hour	$	50	per hour
Fixed expense	$	17,250	per month	$	21,600	per month

Required:

1. Calculate the number of break-even hours for residential clients and commercial clients. (Round your answers to 1 decimal place.)

2. Assume that James decides to focus on commercial clients and his business is operating at 360 hours per month. Calculate the margin of safety both in dollars and as a percentage of sales. (Round percentage answer to 1 decimal place.)