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Compute the margin of safety ratio

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Problem - Presto Company makes radios that sell for $27 each. For the coming year, management expects fixed costs to total $278,500 and variable costs to be $8.10 per unit.

Compute the break-even point in dollars using the contribution margin (CM) ratio.

Compute the margin of safety ratio assuming actual sales are $809,000.

Compute the sales dollars required to earn net income of $314,960.

Reference no: EM131642764

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