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How do compute the margin of safety

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Reference no: EM132626231

The following information relates to the only product sold by Mastrolia Manufacturing.

Sales price per unit $45

Variable cost per unit 27

Fixed costs per year 286,000

Problem a. Compute the contribution margin ratio and the dollar sales volume required to break even.

Problem b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).

Reference no: EM132626231

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