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A retail company has a profit margin of 10% on its sales. The company's fixed costs are $50,000, and its variable costs are $30 per

A retail company has a profit margin of 10% on its sales. The company's fixed costs are $50,000, and its variable costs are $30 per unit. The company has a target profit of $80,000 and expects to sell 10,000 units of its product.

Required:

  1. Calculate the selling price per unit.
  2. Determine the break-even point in units and in sales dollars.
  3. Determine the sales revenue required to achieve the target profit.
  4. Calculate the company's margin of safety in dollars.

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