Answer
(a) 7500
(b) 25%
Work Step by Step
a. Margin of safety value =$(Sales Unit \times Price Per Unit)-( \frac{Fixed Cost}{Price Per Unit - Variable Cost Per Unit} \times Price Per Unit) = (1000\times 30) - (\frac{7500}{30-20} \times30) =7500$
b. Margin of Safety Percentage = $\frac{Margin of Safety Value}{ Total Sales Value}\times100 = \frac{7500}{1000\times30}\times100=25%$
