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If margin of safety is $25000 and budgeted revenue is $45000, then margin of safety in percentage will be

A. 55.56%

B. 25.50%

C. 28.00%

D. 45.00%

Answer: Option A

Solution(By Examveda Team)

Margin of safety in percentage = Margin of safety ÷ Budgeted revenue × 100
= $25000 ÷ $45000 × 100 = 55.56%.

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