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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Drum Co Has Provided the Following Data Concerning Its Only Product