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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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