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Management · Q295

Management Accounting

Graduate and Post Graduate · Management · question 295

Q295

If budgeted revenue is 50000 and breakeven revenue is 35000, then margin of safety would be

A.
$12,000
B.
$14,000
C.
$15,000
Answer
D.
$16,000

Answer: Option C

Solution

Answer: Option C
Solution:
Margin of safety = Budgeted revenue - Breakeven revenue
= 35000 = $15,000.