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Question - James decided to analyze the break even sales of stateboards. James friend, a management accountant mentioned how margin of safety can assist a business in determining their risk of a loss.
The following information is available in this regard:
Units produced 8 000
Units in closing inventory 5 000
Break even value 2 692 954
Sales price per stateboardb: R1, 199
Required - Calculate the margin of safety ratio?
Computation of Amount of Rentals
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