Compute the companys margin of safety compute the companys

Question

Problem

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:

Selling price $25 per unit
Variable expenses $16 per unit
Fixed expenses $7,650 per month
Unit sales 1,000 units per month

Required:

1. Compute the company's margin of safety.

2. Compute the company's margin of safety as a percentage of its sales.