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Blossom Corporation has collected the following information after its first year of operations. Sales were $1,250,000 on 125,000 units, selling expenses $250,000 (40% variable and

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Blossom Corporation has collected the following information after its first year of operations. Sales were $1,250,000 on 125,000 units, selling expenses $250,000 (40\% variable and 60% fixed), direct materials $492,000, direct labor $27,900, administrative expenses $272,000 (20\% variable and 80% fixed), and manufacturing overhead $376,000(70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is. what is its margin of safety ratio? (Round answer to 1 decimol ploce, eg. 10.5.) Margin of safety ratio %

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