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QS 21-18 (Algo) Margin of safety in dollars and as a percent of sales LO C2 Zhao Company has fixed costs of $442,200. Its single

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QS 21-18 (Algo) Margin of safety in dollars and as a percent of sales LO C2 Zhao Company has fixed costs of $442,200. Its single product sells for $189 per unit, and variable costs are $123 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. a Margin of safety (in dollar) $ 623,700 b. Margin of safety (%) 3%

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