If sales quantity is 7000 units and breakeven quantity is 1500 units, then margin of safety would be
A. 4500 units
B. 5500 units
C. 8500 units
D. 9500 units
Answer: Option B
Solution (By Examveda Team)
Margin of safety = Sales quantity - Breakeven quantity= 7000 - 1500 = 5500 units.
This Question Belongs to Management >> Management Accounting
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