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Company X manufactures and sells a single product. The following data is availab...
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Company X manufactures and sells a single product. The following data is available for Year 1:
- Projected annual revenues $7500000 (7.5 million)
- Cost of merchandise 20% of revenue
- Sales commissions 3% of revenue
- Shipping expenses 7% of revenue
- Annual fixed marketing expenses $710116
- Annual administrative expenses $1809410
The company’s margin of safety in terms of revenues is:
0%
❌
0%
0%
0%