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W Ltd makes leather purses. It has drawn up the following budget for its next financial period: Selling price per unit $11.60 Variable production...

W Ltd makes leather purses. It has drawn up the following budget for its next financial period:

Selling price per unit $11.60

Variable production cost per unit $3.40

Sales commission 5% of selling price

Fixed production costs $430,500

Fixed selling and administration costs $198,150

Sales 90,000 units

The margin of safety represents?

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