Unistar Computers makes and sells a unique computer that is designed for a specific market. Cost information relating to that product is shown below:

Sales price	$	2,600	per unit
Variable costs	$	2,100	per unit
Fixed costs	$	175,000	total

Unistar expects to make and sell 520 computers. Based on this information, the margin of safety expressed in units is:

Multiple Choice

• 170 units.

• 520 units.

• 350 units.

• 175 units.

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2)

Derek's Drum Depot (DDD) wants to add a new line of drumsticks to its product line. The following data apply to the new drumsticks line.

Budgeted sales		41,000	sets per year
Sales price	$	16	per set
Variable costs	$	14	per set
Fixed costs	$	32,000	per year

The margin of safety for DDD is (Round your answer to whole percentage value):

Multiple Choice

• 61%

• 48,000 sets

• 41%

• 2,563 sets