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a) Break even Unit = Fixed cost/Contribution margin per unit = 800000/(700-45) = 1221 Units
b) Break even Sales = 1221*700 = $854700
c) Desired unit = (800000+200000)/655 = 1527 Units
After the year is completed, EDC has sold 5,000 units. Your manager has asked you to compute the following information:
- margin of safety in units,
- margin of safety in dollars, and
- margin of safety in percentage.
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