Answer:
Margin of safety= $17,000
Step-by-step explanation:
Giving the following information:
Expected sales= $362,000
Monthly break-even sales= $345,000
To calculate the margin of safety in dollars, we need to use the following formula:
Margin of safety= (current sales level - break-even point)
Margin of safety= 362,000 - 345,000
Margin of safety= $17,000