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Determine the companys margin of safety

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Melka Inc. sells a product for $80 per unit. The variable cost is $70 per unit, and fixed costs are $25,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $25,000.

Miller Inc. has sales of $1,000,000, and the break-even point in sales dollars is $800,000. Determine the company's margin of safety.

Reference no: EM13536684

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