Nellie Company has monthly fixed costs totaling ($100,000) and variable costs of ($20) per unit. Each unit

Question:

Nellie Company has monthly fixed costs totaling \($100,000\) and variable costs of \($20\) per unit. Each unit of product is sold for \($25.\) These data are the same as in the previous exercise. Assume Nellie Company expects to sell 24,000 units of product this coming month.

Required

a. Find the margin of safety in units.

b. Find the margin of safety in sales dollars.

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