Compute the Margin of Safety Mohan Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month's 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. Computer the company's margin of safety.
2. Compute the company', margin of safety a percentage of it, sales.
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