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Calculate the margin of safety and break-even point in sales dollars. Item Amount ($) Selling Price per Unit $50 Variable Cost per Unit $30 Fixed
Calculate the margin of safety and break-even point in sales dollars.
Item | Amount ($) |
Selling Price per Unit | $50 |
Variable Cost per Unit | $30 |
Fixed Costs | $200,000 |
Requirements:
Calculate the contribution margin per unit and contribution margin ratio.
Determine the break-even point in sales dollars and units.
Analyze the margin of safety and its implications for financial risk management.
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