Leisure Products management wants to ensure that each product makes a profit. The company produced a hammock that sold 3,500 units at $80 per unit. The variable cost of production was $36 per unit. The fixed costs were $110,000. What was the margin of safety?
SalesProfit Volume ratio $ 280,000.0055% Break even Sales 200,000.00 Margin of safety 80,000.00 Margin of safety is beyond the break even sales.