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Commerce · Q261

Costing

Graduate and Post Graduate · Commerce · question 261

Q261

A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs 12 Variable cost per unit - Rs 8 Fixed cost for a period - Rs 98,000 Budgeted sales for a period - 30,000 units The margin of safety, expressed as a percentage of budgeted sales,is:

A.
20%
Answer
B.
25%
C.
73%
D.
125%

Answer: Option A

Solution

Answer: Option A
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