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Examveda

If budgeted revenue is $20000 and breakeven revenue is $15000, then margin of safety will be

A. $35,000

B. $13,000

C. $5,000

D. $10,000

Answer: Option C

Solution(By Examveda Team)

Margin of safety = Budgeted revenue - Breakeven revenue
= $20000 - $15000 = $5,000.

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