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Ambrosia Foods produces a gourmet condiment that sells for $24 per unit. Variable cost is $6 per unit, and fixed costs are $8
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Answer #1

first let us know the break even units:

fixed costs / (sale price per unit - variable cost per unit)

=>$8,000 / (24-6)

=>444 units.

margin of safety = units sold - break even units

=> 1500 units - 444 units

=>1,056 units.

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