A company manufactures a single product for which cost and selling price data are as follows:
Selling price per unit - Rs 12
Variable cost per unit - Rs 8
Fixed cost for a period - Rs 98,000
Budgeted sales for a period - 30,000 units
The margin of safety, expressed as a percentage of budgeted sales,is:
A. 20%
B. 25%
C. 73%
D. 125%
Answer: Option A
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Related Questions on Costing
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A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
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B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
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18.33
S= 12 V= 8 f= 98000
C= 12-8= 4
BEP= f/c = 98000/4 = 24500
Margin safety = 30000-24500= 5500
% = 5500/30000*100 = 18.33%
18.33 is correct answer. They made Clerical error
100% RIGHT ANS 18.333%
My answer is also 18.33
Option A right answer h ?????? According to me 18.33 is right answer.......