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Drum CoHas Provided the Following Data Concerning Its Only Product

Question 101

Essay

Drum Co.has provided the following data concerning its only product:
 Selling price $200 per unit  Current sales 18,800 units  Break-even sales 14,288 units \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.

Correct Answer:

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