Drum Co Has Provided the Following Data Concerning Its Only Product

question 119

Essay

Drum Co. has provided the following data concerning its only product:
$\begin{array}{ll}\text { Selling Price } & \text { 200per unit } \\\text { Current sales } & 18,800 \text {nits } \\\text { Break-even sales } & 14,288 \text { units }\end{array}$
Required:
Compute the margin of safety in both dollars and as a percentage of sales.

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