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The Red Wing Company Reported Sales of $750,000, a Contribution

Question 47

Multiple Choice

The Red Wing Company reported sales of $750,000, a contribution margin ratio of 25%, a variable costof $150 per unit, and fixed costs totaling $125,000. What was the margin of safety in units?


A) 3,750
B) 1,250
C) 2,500
D) 1,000

Correct Answer:

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