Discuss the margin of safety


Boston company is considering the production and sale of a new product with the following sales and cost data: unit sales price, $300; unit variable costs, $180; total fixed costs, $270,000; and projected sales, $900,000. What is the margin of safety (show your calculations):

a) in dollar Sales?

b) As a percent of sales?

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Accounting Basics: Discuss the margin of safety
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