Viejol corporation has collected the following information after its first year of sales. sales were $1,600,000 on 100,000 units, selling expenses $250,000 (40% variable and 60% fixed), direct materials $490,000, direct labor $290,000, administrative expenses $270,000 (20% variable and 80% fixed), and manufacturing overhead $380,000 (70% variable and 30% fixed). top management has asked you to do a cvp analysis so that it can make plans for the coming year. it has projected that unit sales will increase by 10% next year.
if the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? that is, what is its margin of safety ratio? (round answer to 1 decimal place, e. g. 10.5.