The REDICO Company manufactures slippers that sell for $12.50 each pair. In 2019, the company made and sold 60,000 pair of slippers. . A pair of slippers equals one unit. The company had fixed manufacturing costs of $216,000. It also had fixed costs for administration of $79,525. The per-unit costs of each pair of slippers are as follows:

Direct Materials: $3.00

Direct Labor: $1.50

Variable Manufacturing Overhead: $0.40

Variable Selling Expenses: $1.10

Using the information above, perform a cost-volume-profit (CVP) analysis by completing the steps below. All CVP calculations should be completed in the REDICO Company Spreadsheet (attached).

4. Calculate the margin of safety:

1. In units
2. In sales dollars
3. As a percentage

Requirement 4
Costs per Unit	Traditional	Travel
Traditional	$	$
ABC	$	$
Difference	$	$