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Hill and Hamer Limited makes specialist storage units. In the 20X2 financial year each unit will sell for £178. Costs of manufacture are: direct materials £38 and direct labour £26. Fixed costs are budgeted at £126 680. The net profit budgeted for 20X2 is £92 270.
Problem 1: What is the company's margin of safety in units (to the nearest whole unit)?
a. 810
b. 1111
c. 302
d. 1921
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