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Grissom Company

Price: $1.99

Grissom Company estimates that variable costs will be 60% of sales, and fixed costs will
total $800,000.The selling price of the product is $4.

(a) Compute the break-even point in (1) units and (2) dollars.
(b) Compute the margin of safety in (1) dollars and (2) as a ratio, assuming actual sales are $2.5

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