Margin of Safety

Head-First Company plans to sell 5,030 bicycle helmets at $72 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1,833.

Required:

1. Calculate the margin of safety in terms of the number of units. fill in the blank

2. Calculate the margin of safety in terms of sales revenue. fill in the blank