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How to find margin of safety
Okay, I've been having trouble with this question for a while now, I need to find the margin of safety in dollars. I know that the formula for it is:
budget sales - breakeven sales x selling price. BUT, the information I have to do the question didn't include a selling price. How do I find it? Here's the info: X Company is currently selling 15,000 units. Total fixed costs are $60,000, and CM per unit is $8.00. The company's tax rate is 30 percent. |
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