The Lids national chain of hat stores carry many styles of hats that are all sold at the same price. To encourage sales personnel to step up their sales efforts, the company pays a generous sales commission on each hat sold. Sales personnel also receive a small basic salary.

Required:

Lids is a fairly new company. The company has asked you, as a member of its planning group,to assist in some basic analysis of its stores and company policies.

The following table contains cost and revenue data for the Serenade store. These data are

typical of the company's many outlets:

Selling price	$30.35
Variable expenses
Invoice cost	$9.00
Sales Commission	7.00
	$16.00
Contribution Margin	$14.35
Fixed Expenses (annually)
Advertising	$80,000
Rent	150,000
Salaries	70,000
	$300,000

Refer to the original data. Determine the total sales dollars the company would have to achieve

to earn an after-tax profit of $250,000 given that their income tax rate is 25%?

Also, at this level of sales, what would be the company's Margin of Safety and Margin of Safety %?