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Break even sales - Fixed cost / contribution margin ratio

Break even sales = 600000 / 0.3 = 2000000

Margin of safety = actual sales - breakeven sales

Break even sales + margin of safety = Actual sales

2000000 + 0.2(actual sales) = Actual sales

if actual sales = 1 then

2000000 + 0.2 = 1

2000000 = 0.8 actual sales

actual sales = 2000000 / 0.8

actual sales = 2500000

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