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hello john
referring to your lecture notes on page 53 the question 2 on the test :
i could not understand how you arrived at 20% as your answer…i seem to be getting 16.67% as the margin of safety (( 240000-200000)/240000*100 = 16.67%)
alternatively in units:
breakeven sales in units = 80000/(20-12) = 10000
Margin of safety = 12000-10000 = 2000 unitsplease correct me if i am wrong
The answer is C.
(I think you must have downloaded the notes some time ago, because originally there was a mistake and it did show the answer as 20%. However it was corrected a month or so ago and now it does show the correct answer.)
ohh no….i have already printed the notes…i hope there aren’t any other changes, is there?
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