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Margin of Safety Head-First Company plans to sell 4,810 bicycle helmets at $72 each in the coming year. Unit variable cost is

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Answer #1

1. Margin of safety units = Actual units sold - Break even units.

>> Margin of safety units = 4810 - 1833 = 2977 units

2. Margin of safety sales = Margin of safety units * selling price

>> Margin of safety sales = 2977 * $ 72 = $ 214344.

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