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The amount by which a company's sales can decline before losses are incurred is called the: contribution margin. degree of operating leverage. margin of safety.

The amount by which a company's sales can decline before losses are incurred is called the:

contribution margin.
degree of operating leverage.
margin of safety.

contribution margin ratio.

.

Lovely Corporation has provided the following data concerning its only product:

Selling Price.............. $150 per unit
Current sales............ 13,900 units
Break Even Sales....... 10,147 units

What is the margin of safety in dollars?

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