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Abigail Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:
Selling Price P25 per unit
Variable expense P15 per unit
Fixed expense P8,500 per month
Unit sales 1,000 units per month
Required:
Problem 1. Compute the company's margin of safety.
Problem 2. Compute the company's margin of safety as a percentage of its sales.
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