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# 32 A firm has the following information available for two products: A B Sales $120,000 $130,000 Variable CGS $ 30,000 $50,000 Fixed CGS $

# 32

A firm has the following information available for two products:

A B

Sales $120,000 $130,000

Variable CGS $ 30,000 $50,000

Fixed CGS $ 25,000 $20,000

Gross Margin $65,000 $ 60,000

Variable SG&A $15,000 $20,000

Fixed SG&A $20,000 $10,000

Net income $30,000 $30,000

What is the margin of safety for the product with the greater likelihood to incur loss?

Product A : $75,000

Product B: $65,000

Product A: $48,000

Product B $60,000

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