[saadgadit]

Cath,
If margin of safety is 20% and breakeven revenue is $200,000, then what will be the budgeted sales?
i guess 200000÷0.8=250000
and selling price as described above is $10 then budgeted sales units = 25000 according to my calculation We need to increase variable cost to $5.2 (from 4) in order to achieve breakeven, this represent 30% increase in variable cost.

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