Computer the margin of safety

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Reference no: EM1358481

Embleton Company estimates that variable costs will be 40% of sales, and fixed costs will total $900, 000. The selling price of the product is $5.

a. Compute the break-even point in (1) units and (2) dollars.1
b. Computer the margin of safety in (1) dollars and (2) as a ratio, assuming actual sales are $2 million.

Reference no: EM1358481

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