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Find the margin of safety in sales dollars

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Margin of Safety (Single Product).

Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is sold for $25 (these data are the same as the previous exercise). Assume Nellie Company expects to sell 24,000 units of product this coming month.

Required:

Question 1: Find the margin of safety in units.

Question 2: Find the margin of safety in sales dollars.

Reference no: EM132530557

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