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Smith Company produces desk lamps. The information for June indicated that the selling price was $25 per unit, variable costs were $15 per unit, and

Smith Company produces desk lamps. The information for June indicated that the selling price was $25 per unit, variable costs were $15 per unit, and fixed costs totaled $6,000. Smith currently sells 1,100 lamps and earns $5,000 of profit. How much is Smiths margin of safety in dollars?

$12,500.

$27,500.

$15,000.

$600

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