Compute margin of safety

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A company makes a single product that it sells for $18 per unit. Fixed costs are $76,000 per month and the product has a contribution margin ratio of 40%. If the company's actual sales are $238,000, its margin of safety is:

(Round your intermediate calculation to the nearest dollar amount.)

$52,000
$48,000
$49,500
$46,000

 

Reference no: EM1358429

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