Mississippi company produces and sells one product its

Question

Mississippi Company produces and sells one product. Its sales and expenses for last month were:

Total               Per Unit

Sales                                               $17,600          $16.00

Variable costs       11,000            11.00

Contribution Margin                              6,600    6.60

Fixed costs                                       6,000

Profit                                                     600

Compute Mississippi Company’s margin of safety in dollars and as a percentage of sales.