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Assume David's, a local tanning salon, has annual fixed costs are $100,000, and variable costs are 20 percent of sales revenue. Last year's revenues totaled
Assume David's, a local tanning salon, has annual fixed costs are $100,000, and variable costs are 20 percent of sales revenue. Last year's revenues totaled $220,000. What was last year's margin of safety in sales dollars?
$95,000
( )
$125,000
( )
$76,000
( )
$375,000
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