Calculate the margin of safety in units

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Question - Calculate the margin of safety in units, revenue dollars and percentage.

Ewing Computers makes and sells circuit boards. Each circuit board sells for an average of $225 and has a variable cost of $165. The company experiences total fixed costs of $210,000. For 2021, the company has budgeted to sell 5,000 circuit boards.

Variable costs per unit have increased by 5% while sales revenue per unit has decreased by 3%.

Reference no: EM132830385

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