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X Ltd. manufactures plastic products and sells them for SAR 350 per unit. The firm's...

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Accounting

X Ltd. manufactures plastic products and sells them for SAR 350 per unit. The firm's variable cost per unit is SAR 90, while its total fixed costs are SAR 110,000. The company expects to sell 1,800 units in the coming year. Calculate the following:

  1. Degree of operating leverage
  2. Margin of safety in units
  3. Margin of safety in SAR value
  4. Margin of safety in percentage

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