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What is the margin of safety for Tim manufacturing company

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Reference no: EM133100687

Question - Tim's manufacturing company wants to add two new ice cream flavors to its menu. The data below applies to the new flavor.

Budgeted Sales: 31,000 two flavors per year

Sales Price: $15 per flavor

Variable costs: $14 per flavor

Fixed cost: $20,000 per year

Required - What is the margin of safety for Tim's manufacturing company?

Reference no: EM133100687

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