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What is the margin of safety

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Reference no: EM132477508

A company manufactures cell phone cases. The selling price per case is $20 with a variable cost per unit of $10. The forecasted sales for the year are $400,000. Related costs are shown below.

Depreciation     $35,000

Fixed overhead  40,000

Administration   65,000

Utility costs      20,000

Question 1: What is the margin of safety?

Reference no: EM132477508

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