### Determine margin of safety in terms of dollars

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##### Reference no: EM1311181

From the data given compute the Margin of Safety.

Penury Company offers two products. At present, the following represents the usual results of a month\'s operations:

 Product K Product L Per Per Combined Amount Unit Amount Unit Amount Sales revenue..................... \$120,000 \$1.20 \$80,000 \$0.80 \$200,000 Variable expenses.............. 60,000 0.60 60,000 0.60 120,000 Contribution margin.......... \$  60,000 \$0.60 \$20,000 \$0.20 80,000 Fixed expenses.................. 50,000 Net operating income........ \$  30,000

Find the margin of safety in terms of dollars.

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