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Management · Q277

Management Accounting

Graduate and Post Graduate · Management · question 277

Q277

If budgeted sales in unit is 50 and breakeven sales in unit is 12, then margin of safety in units will be

A.
62
B.
38
Answer
C.
48
D.
58

Answer: Option B

Solution

Answer: Option B
Solution:
Margin of safety = Budgeted sales - Breakeven sales
= 50 - 12 = 38 units.