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You own a small mobile store that sells popcorn ( usually outside The Leverton - Graham s cinema ) . This small business is called

You own a small mobile store that sells popcorn (usually outside The Leverton - Grahams cinema). This small business is called Pop-up, and has been operating for a number of years. It is transportable and you are hired out for other events like sport matches, 21st birthday parties, and sometimes even weddings. You feel it is time to move on in your career, so you are deciding whether or not to sell the small business or pass it on to your brother, who is studying to be an accountant. Before you do this, you need to get the financials and management accounts in order so that you can prove this is a profitable business. You have the following information about your business and its monthly expenses and figures:
You sold 4,800 packets of popcorn this past month and produced 5,000 packets.
Each packet of kernels is 500g, which costs R10 to buy from your suppliers.
Each packet of popcorn sold contains 100g of popcorn kernels.
You sell the popcorn for R15 a bag.
The mobile store depreciates at R335 per month.
Other costs that were incurred while making the popcorn are the following:
Electricity amounted to R1200 this past month. (In previous months it was R1400 at the highest level of activity when you made 6000 bags of popcorn and R1000 at the lowest level of activity when you made 4000 bags of popcorn.)
Paper bags are R110 for 200 bags.
You pay yourself a salary of R10000 a month. If you are currently selling 4,800 packets of popcorn, calculate the margin of safety in units. Include a definition and show your calculations

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