Break-Even

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Contribution per unit / Fixed Costs = number of units to be sold e.g Contribution is $6.6. FC = 429,000 so make 66,000 units to break even

Margin of Safety is the difference between what you expect to sell and the Break Even Point

Break-Even is 66,000. Yiu expect the sell 80,000 therefore 14,000/80,000 = 17.5% margin of safety

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