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Weaver Company makes small custom area rugs that incorporate the image of your pet. Each rug requires $10.00 in DM and $10.00 in DL. Weaver
Weaver Company makes small custom area rugs that incorporate the image of your pet. Each rug requires $10.00 in DM and $10.00 in DL. Weaver has to pay $4,800 in rent for the facility per month. Each rug sells for $30.00.
If the relevant tax rate is 20%, how many rugs does Weaver need to produce and sell each month to achieve an after-tax profit of $7,000? Given your pervious answer, calculate the margin of safety in dollars.
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