Drum CoHas Provided the Following Data Concerning Its Only Product

question 101

Essay

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

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Definitions:

Products

The substances that are formed as a result of a chemical reaction.

Major Organic Product

The primary product resulting from an organic reaction, typically the one in greatest yield or of greatest importance.

Mechanism

The detailed step-by-step description of how a chemical reaction occurs at the molecular level.

Reaction

A process that results in the chemical transformation of one set of chemical substances to another.