Company margin of safety-percentage of its sales


Real Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month's budget appear below:

Selling price $25 per unit

Variable expenses $15 per unit

Fixed expenses $8,500 per month

Unit sales 1,000 units per month

Required:

1) Compute the company's margin of safety.

2) Compute the company's margin of safety as a percentage of its sales.

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Accounting Basics: Company margin of safety-percentage of its sales
Reference No:- TGS0515403

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