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Zhao Company has fixed costs of $ 2 7 5 , 6 0 0 . Its single product sells for $ 1 6 1 per

Zhao Company has fixed costs of $275,600. Its single product sells for $161 per unit, and variable costs are $109 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.Zhao Company has fixed costs of $275,600. Its single product sells for $161 per unit, and variable costs are $109 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)
b. Margin of safety (%)
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