Dean Dynamics purchased a new software program to improve the inventory tracking of its products...
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Dean Dynamics purchased a new software program to improve the inventory tracking of its products in the warehouse. This leads to an additional $40,000 per year in costs. The investors want to know how this equipment affects the sales revenue and the margin of safety. The company reaches sales of $880,000 after the first year with the software program, with a breakeven point of $800,000 in sales. Required: Calculate the margin of safety in dollars and in percentage of sales
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