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Find the company margin of safety

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Reference no: EM132541600

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:

Question 1. Compute the company's margin of safety.

Question 2. Compute the company's margin of safety as a percentage of its sales.

Reference no: EM132541600

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