Margin of safety and the margin of safety ratio

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Reference no: EM13972966

Miller Metal Co. makes a single product that sells for $41 per unit. Variable costs are $26.1 per unit, and fixed costs total $65,060 per month.

Required:

a. Calculate the number of units that must be sold each month for the firm to break even.

b. Assume current sales are $420,000. Calculate the margin of safety and the margin of safety ratio.

Reference no: EM13972966

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