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QS 18-11 Margin of safety LO P2 Zhao Co. has fixed costs of $342,200. Its single product sells for $173 per unit, and variable costs

QS 18-11 Margin of safety LO P2

Zhao Co. has fixed costs of $342,200. Its single product sells for $173 per unit, and variable costs are $115 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.

Percent of expected sales = 41%

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