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Elodia [21]
3 years ago
12

Morganti corporation sells a product for $170 per unit. the product's current sales are 41,800 units and its break-even sales ar

e 33,900 units. what is the margin of safety in dollars?
Business
1 answer:
ololo11 [35]3 years ago
3 0
To find the margin of safety in dollars, subtract the breakeven sales from the budged or actual sales. 

Current sales are 41,800 units 
Break even point in units is 33,900
Cost per unit is $170

(33,900)($170) = $5,763,000
(41,800)($170) = $7,106,000

The margin of safety in dollars is:
$7,106,000 - $5,763,000 = $1,343,000
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