Question: QS 1 8 - 1 8 ( Static ) Margin of safety in dollars and as a percent of sales LO C 2 Zhao Company

QS 18-18(Static) Margin of safety in dollars and as a percent of sales LO C2
Zhao Company has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the company expects sales of 10,000 units, compute its margin of safety
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(a) in dollars and
(b) as a percent of expected sales.
Hint
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References
a. Margin of safety (in dollar)
 QS 18-18(Static) Margin of safety in dollars and as a percent

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