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5. Assume a company produces one product that sells for $55, has a variable cost per unit of $35, and has fixed costs of $100,000.
5. Assume a company produces one product that sells for $55, has a variable cost per unit of $35, and has fixed costs of $100,000. How many units must the company sell to earn a target profit of $50,000? (100,000 + $50,000) / $20 CM per unit = 7,500
6. Given the same facts as in question 5 above, if the company exactly meets its target profit, what will bbe its margin of safety in sales dollars?
I've already figured out question #5, but I need help figuring out #6?
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