Solved: Determining margin of safety in units, Financial Accounting

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Determining margin of safety in units

Response to the following problem:

Medley Company makes a product that sells for $19 per unit. The company pays $8 per unit for the variable costs of the product and incurs annual fixed costs of $176,000. Medley expects to sell 21,000 units of product.

Required:

Determine Medley's margin of safety in units, sales dollars, and as a percentage.

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Financial Accounting: Determining margin of safety in units

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Financial Accounting: Determining margin of safety in units

Reference No:- TGS02072616

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