Response to the following problem:
Mohan Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next months budget appear below:
Selling price $25 per unit
Variable expenses $15 per unit
Fixed expenses $8,500 per month
Unit sales 1,000 units per month
Required:
1. Compute the companys margin of safety. (Omit the "tiny_mce_markerquot; sign in your response.)
2. Compute the companys margin of safety as a percentage of its sales. (Omit the "%" sign in your response.)