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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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