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S7-13 Compute margin of safety (Learning Objective 5) Given the following information, calculate the margin of safety if the sales double. $100,000 20,000 $80,000 80,000

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S7-13 Compute margin of safety (Learning Objective 5) Given the following information, calculate the margin of safety if the sales double. $100,000 20,000 $80,000 80,000 $0 Sales Less: variable expenses Operating income Compute and use operating leverage factor (Learning Objective 5) Refer to the original data from S7-13, where 1,000 units were sold at the price of $100. If the company sells 1,200 units, what is the operating leverage factor? If the sales volume increases by 10%, by what percentage will the operating income change? S7-14

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