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4 Moon company has an average selling price of OMR 20 per unit and an average variable cost of OMR 13 per unit. Current month's
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Moon company has an average selling price of OMR 20 per unit and an average variable cost of OMR 13 per unit. Current month's operating income is OMR 150,000. During the next month, the sales is expected to decrease by 4,500 units. What is the expected operating income for the next month? Select one: O a OMR 118,500 O b. OMR 115,000 COMR 111,500 O d. OMR 181,500 e. None of the answers given The margin of safety tells managers: Select one: O a how much profit would drop if sales decreased. O b. None of the given answer is correct. O c how much profit would have to increase to hit target sales. d. how much sales would have to increase to hit the target profit. e. how much total cost could increase before the firm no longer earns profitsStep by Step Solution
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