The margin of safety as a percentage of sales is closest to

Question

Mcmurtry Corporation sells a product for $170 per unit. The product's current sales are 12,800 units and its break-even sales are 11,136 units. The margin of safety as a percentage of sales is closest to:

Group of answer choices

Answer 1

The margin of safety as % of sales = Current Sales - Sales at Breakeven/Current sales

= (12,800 X$ 170) - (11,136 X$170) = 2,176,000 - 1,893,120. = 13%

(12,800 X $170) 2,176,000