Haslem Inc. has provided the following data concerning its only product: Selling price$100per unitCurrent sales 37,300unitsBreak-even sales 26,483unitsRequired: Compute the margin of safety in both dollars and as a percentage of sales.
What will be an ideal response?
| Sales (at the current volume of 37,300 units) (a) | $ | 3,730,000 | |
| Break-even sales (at 26,483 units) | 2,648,300 | ||
| Margin of safety (in dollars) (b) | $ | 1,081,700 | |
| Margin of safety percentage, (b) ÷ (a) | 29 | % | |
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