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The Following Monthly Data Are Available for Fortner Industries Which

Question 172

Essay

The following monthly data are available for Fortner Industries which produces only one product which it sells for $18 each. Its unit variable costs are $8 and its total fixed expenses are $17000. Actual sales for the month of May totaled 2000 units.
Instructions
Compute the margin of safety in dollars for the company for May.

Correct Answer:

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BEP in units: $18X - $8X - $17000 = 0
BE...

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