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Company Lily produces and sells two products. The W sells for $8 per unit and has a total variable cost of $3.80 per unit, while
Company Lily produces and sells two products. The W sells for $8 per unit and has a total variable cost of $3.80 per unit, while the R sells for $14 per unit and has a total variable cost of $4.30. For every five units of W sold, six units of R are sold. Company's expected fixed costs are $83,160 for the period. Budgeted sales revenue for next period is $150,040, in the standard sales mix. Required: Calculate the margin of safety in terms of sales revenue and also as a percentage of budgeted sales revenue
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