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Determine the margin of safety expressed in dollars

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Reference no: EM131786923

Question - A company with a break-even point at $900,000 in sales revenue and had fixed costs of $225,000. When actual sales were $1,000,000 variable costs were $750,000.

Determine

(a) the margin of safety expressed in dollars,

(b) the margin of safety expressed as a percentage of sales,

(c) the contribution margin ratio, and

(d) the operating income.

Reference no: EM131786923

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