Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below:

Selling price		$30	per unit
Variable expenses		$20	per unit
Fixed expenses		$7,500	per month
Unit sales		1,000	units per month

Required:

1. Compute the companys margin of safety.

2. Compute the companys margin of safety as a percentage of its sales.