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Glacial Comp

Price: $1.99

Glacial Company estimates that variable costs will be 62.5% of sales, and fixed
costs will total $600,000. 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 million.

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