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If margin of safety is 25000 and budgeted revenue is 45000...

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

Answer & Solution
Correct Answer: Option A
Margin of safety in percentage = Margin of safety ÷ Budgeted revenue × 100
= $25000 ÷ $45000 × 100 = 55.56%.
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