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A company manufactures and sells a single product for which the variable cost is 12$ and the contribution to sales ratio is 40% The fixed

A company manufactures and sells a single product for which the variable cost is 12$ and the contribution to sales ratio is 40%

The fixed cost is 80000 per year.

They are budgeting for selling 12000 units per year.

What is the margin of safety?

  1. 400%
  2. 16.67%
  3. 20%
  4. 106%

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