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1. Sumbro is a manufacturer of sun umbrellas that are distributed to resort hotels. Data concerning the next month's budget appear below: Selling Price Variable
1. Sumbro is a manufacturer of sun umbrellas that are distributed to resort hotels. Data concerning the next month's budget appear below: Selling Price Variable Cost Fixed Cost Unit Sales $30/unit $20/unit $7,500 (per month) 1,000 units per month Required: a) Compute the company's margin of safety in dollars b) Compute the company's margin of safety as a percentage of its sales
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