Margin of Safety Head-First Company plans to sell 5,200 bicycle helmets at $68 each in the coming year.

Margin of Safety

Head-First Company plans to sell 5,200 bicycle helmets at $68 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 2,152.

Required:

1.  Calculate the margin of safety in terms of the number of units. units

2.  Calculate the margin of safety in terms of sales revenue.$