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Budgeted sales are 982000, break even sales are 932200 and fixed expenses are 429000. Te comapny;s budgeted margin of safety in dollars is___________

User Danil
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Final answer:

The company's budgeted margin of safety is the difference between budgeted sales and break-even sales, amounting to $49,800.

Step-by-step explanation:

The company's budgeted margin of safety in dollars represents the difference between the actual or budgeted sales and the break-even sales. It measures how much sales can drop before the company reaches its break-even point and is calculated as:

Budgeted Margin of Safety = Budgeted Sales - Break Even Sales

In this case:

Budgeted Margin of Safety = $982,000 - $932,200 = $49,800

Therefore, the budgeted margin of safety for the company is $49,800.

User Khan Shahrukh
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