Sumbro is a manufacturer of sun umbrellas that are distributed to resort hotels. Data concerning...
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Accounting
Sumbro is a manufacturer of sun umbrellas that are distributed to resort hotels. Data concerning the next months budget appear below:
Selling Price $30/unit
Variable Cost $20/unit
Fixed Cost $7,500 (per month)
Unit Sales 1,000 units per month
Required:
Compute the companys margin of safety in dollars
Compute the companys margin of safety as a percentage of its sales
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