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Margin of safety Organic Health Care Products Inc expects to maintain the same inventaries at the end of 2018 at the beging of the year.

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Margin of safety Organic Health Care Products Inc expects to maintain the same inventaries at the end of 2018 at the beging of the year. The total of all production costs for the years therefore sumed to be equal to the cost of goods sold with this in mind the various department heads were seed to sometimes the cost for the departments during 20. Aurry report of the estimates in follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs Direct material 50.00 Director 3.00 Factory overhead $ 200,000 1:50 Selling expenses Advertising Sales salaries and commissions 1.450,000 93,000 340,000 Travel 2,000 010 Miscellaneous Selling sense Administrative expenses 300,000 Omice and omien salades Supplies 10,000 0:50 Factory overhead $ 200,000 1.50 Selling expenses: Advertising 1,450,000 Sales salaries and commissions 93,000 1.85 Travel 340,000 Miscellaneous selling expense 2,000 0.10 Administrative expenses: Office and officers' salaries 300,000 Supplies Miscellaneous administrative expense 10,000 0.50 5,000 0.05 Total $2,400,000 $15.00 It is expected that 400,000 units will be sold at a price of $25 a unit. Maximum sales within the relevant rang Determine the following based upon the estimates for 2048: 160,000 units 1. Margin of safety for 2048 in units of sales. 2. Margin of safety for 2048 in dollars of sales. 3. Margin of safety for 2018 expressed as a percentage of sales. %

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