Problem: Module $5$ Textbook Problem $10$

Learning Objective: $5-8$ Calculate and interpret the margin of safety measure

Gibson Company makes a product that sells for $$32$ per unit. The company pays $$15$ per unit for the variable costs of the product and incurs annual fixed costs of $$147,900.$ Gibson expects to sell $21,900$ units of product.

Required

Determine Gibson's margin of safety expressed as a percentage. $($Round your percentage answers to $2$ decimal places $($i$.$e$.,0\mathrm{.}2345$ should be entered as $23\mathrm{.}45).)$

Margin of safety