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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