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Vaughan Company has the following data regarding its only product: SP = $10 per unit, Variable Cost = $6 per unit, Fixed Cost = $44,000,
Vaughan Company has the following data regarding its only product:
SP = $10 per unit, Variable Cost = $6 per unit, Fixed Cost = $44,000, and current level of sales = 15,000 units
Therefore, we can say:
Breakeven in dollars is $110,000 AND the margin of safety is 4,000 units
The contribution margin ratio is 60% False
The margin of safety in units is 4,000 units
all of the choices are correct
Breakeven in dollars is $110,000
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