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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Drum CoHas Provided the Following Data Concerning Its Only Product