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Determine the margin of safety expressed in dollars

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Reference no: EM131769855

Question - Company M had fixed costs of $262,500, variable costs of $625,000, and actual sales of $1,000,000. If the company has a break-even point at $700,000 in sales revenue, determine

(a) the margin of safety expressed in dollars,

(b) the margin of safety expressed as a percentage of sales,

(c) the contribution margin ratio, and

(d) the operating income.

Reference no: EM131769855

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