Viejol Corporation has collected the following information after its first year of sales. Sales were $1,440,000on120,000units, selling expenses $210,000(40% variable and 60% fixed), direct materials $504,000, direct labor $169,400, administrative expenses $276,000(20% variable and 80% fixed), and manufacturing overhead $382,000(70% variable and 30% fixed). Top management has asked you for a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.

Contribution margin for current year 360000

Contribution margin for projected year 396000

Fixed Costs 461400

Break-even point in units 153800 units

Break-even point in dollars $1845600

Sales dollars required for target net income $2709600

If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is, what is its margin of safety ratio?(Round answer to 1 decimal place, e.g. 10.5.)

Margin of safety ratio _________%