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1. Define what is the margin of safety, and how can it be used to help an organization reduce sales prices without incurring operating losses.

1. Define what is the margin of safety, and how can it be used to help an organization reduce sales prices without incurring operating losses.

2. How can a company use the High-Low Method to help estimate cost and thus set pricing for new customers? In your answer, describe the High-low method and then proceed to answer how it can be used to estimate cost and determine pricing for new or existing customers.

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