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Curvy Confections Is Considering Building a New Plant in Europe

Question 254

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Curvy Confections is considering building a new plant in Europe. It predicts sales at the new plant to be 38,000 units at $5.00/unit. Below is a listing of estimated expenses: Curvy Confections is considering building a new plant in Europe. It predicts sales at the new plant to be 38,000 units at $5.00/unit. Below is a listing of estimated expenses:   A European firm was contracted to sell the product and will receive a commission of 20% of the sales price. No U.S. home office expenses will be allocated to the new facility. (Round intermediary dollar calculations to the nearest whole dollar and round percentages to one-tenth percent.)  The margin of safety percentage for Curvy Confections is A) 47.4%. B) 41.1%. C) 152.6%. D) 21.6%. A European firm was contracted to sell the product and will receive a commission of 20% of the sales price. No U.S. home office expenses will be allocated to the new facility. (Round intermediary dollar calculations to the nearest whole dollar and round percentages to one-tenth percent.)
The margin of safety percentage for Curvy Confections is


A) 47.4%.
B) 41.1%.
C) 152.6%.
D) 21.6%.

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