Solution-Compute company margin of safety for abigail

Compute company margin of safety for abigail corporation

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Reference no: EM132620445

Abigail Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below:

Selling Price P25 per unit

Variable expense P15 per unit

Fixed expense P8,500 per month

Unit sales 1,000 units per month

Required:

Problem 1. Compute the company's margin of safety.

Problem 2. Compute the company's margin of safety as a percentage of its sales.

Reference no: EM132620445

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Compute company margin of safety for abigail corporation

Reference no: EM132620445

Reference no: EM132620445

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