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If budgeted revenue is $50000 and breakeven revenue is $35000, then margin of safety would be

A. $12,000

B. $14,000

C. $15,000

D. $16,000

Answer: Option C

Solution(By Examveda Team)

Margin of safety = Budgeted revenue - Breakeven revenue
= $50000 - $35000 = $15,000.

This Question Belongs to Management >> Management Accounting

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Comments ( 1 )

  1. Samuel Kin
    Samuel Kin :
    5 years ago

    Standardized techniques that are performed repetitively on different kinds of materials to convert them into different finished products are known as:

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