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Compute the margin of safety as a ratio

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Reference no: EM133012251

Cullumber Company estimates that variable costs will be 65% of sales, and fixed costs will total $490,000. The unit selling price of the product is $5.

Problem 1: Assuming actual sales are $2 milllion, compute the margin of safety (1) in dollars and (2) as a ratio.

Reference no: EM133012251

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