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GlobalFoods Inc., a company specializing in organic snacks, aims to achieve a target profit of $ 2 0 0 , 0 0 0 in the

"GlobalFoods Inc.," a company specializing in organic snacks, aims to achieve a target profit of $200,000
in the next fiscal year. The selling price per snack pack is $5, with a variable cost of $2 per pack and total
fixed costs amounting to $300,000.
2.a) Determine the number of units that must be sold to both break even and reach the target profit.
2.b) Explore the concept of the margin of safety by calculating it for the target profit volume and
discussing its implications.
Deliverable:
A comprehensive report outlining the steps taken to calculate the break-even point and the target profit
volumes, including any formulas used.

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