Question 1

Raveen Products sells camping equipment. One of the companys products, a camp lantern, sells for $90 per unit. Variable expenses are $63 per lantern, and fixed expenses associated with the lantern total $135,000 per month.

Required:

Compute the companys Margin of Safety in percentage. (write without % sign) eg 40 for 40%, or 62.5 for 62.5%.