Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Revenue and cost information for each product appears below:
? the unit that attaches to the faucet is sold for $80 and has variable costs of $20
? the pitcher-filter sells for $90 and has variable costs of $25
? fixed costs total $775,000
? Pure Water sells 3 faucet models for every 2 pitcher-filters sold Assume that last year, the company sold 12,000 faucet model units and 8,000 pitcher-filter units.
Calculate the margin of safety reported by Pure Water Products last year. Do not use decimals in your answer.