Calculate the margin of safety ratio

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Reference no: EM132826545

Question - James decided to analyze the break even sales of stateboards. James friend, a management accountant mentioned how margin of safety can assist a business in determining their risk of a loss.

The following information is available in this regard:

Units produced 8 000

Units in closing inventory 5 000

Break even value 2 692 954

Sales price per stateboardb: R1, 199

Required - Calculate the margin of safety ratio?

Reference no: EM132826545

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