Compute the companys margin of safety compute the companys

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Reference no: EM13392467

Real Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month's budget appear below:

Selling price $25 per unit

Variable expenses $15 per unit

Fixed expenses $8,500 per month

Unit sales 1,000 units per month

Required:

1) Compute the company's margin of safety.

2) Compute the company's margin of safety as a percentage of its sales.

Reference no: EM13392467

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