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7. ABC Company is considering to discontinue a certain product line if it does not have a margin of safety higher than 15%. The break

7. ABC Company is considering to discontinue a certain product line if it does not have a margin
of safety higher than 15%. The break even sales is P 76,800 and the margin of safety is P 13,200.
Based on this information , the controller has recommended that ABC keep its product line.

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