What is the margin of safety in dollars for company

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Reference no: EM132763567

Problem 1: Our company sells its product for $80 per unit and has a variable cost of $40 per unit. Total fixed costs equal $18,000. The breakeven in units is 450, and we expect to sell 400 units. What is the margin of safety in dollars?

a. ($2,000)

b. $4,000

c. ($4,000)

d. $2,000

Reference no: EM132763567

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