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Management · Q311

Management Accounting

Graduate and Post Graduate · Management · question 311

Q311

If budgeted revenue is 20000 and breakeven revenue is 15000, then margin of safety will be

A.
$35,000
B.
$13,000
C.
$5,000
Answer
D.
$10,000

Answer: Option C

Solution

Answer: Option C
Solution:
Margin of safety = Budgeted revenue - Breakeven revenue
= 15000 = $5,000.
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