What is Stuart projected margin of safety for current year

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Question - Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below:

Variable costs per unit:

Production $5

SG&A $1

Fixed costs:

Production $40,000

SG&A $60,000

Estimated volume 20,000 units

a) What is Stuart's projected margin of safety for the current year?

b) What is Stuart's projected degree of operating leverage for the current year?

Reference no: EM132926578

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