How to compute margin of safety and margin of safety ratio

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Reference no: EM132657380

CVP Analysis and Margin of Safety

Units sold 1,000

Price $ 10

Sales $10,000

Variable manufacturing costs 4,000

Fixed manufacturing costs 2,000

Variable selling costs 1,000

Fixed administrative costs 1,000

Required

Problem 1: Using the data provided, compute the margin of safety and margin of safety ratio.

Reference no: EM132657380

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