Q293
If sales quantity is 7000 units and breakeven quantity is 1500 units, then margin of safety would be
A.
4500 units
B.
5500 units
AnswerC.
8500 units
D.
9500 units
Answer: Option B
Solution
Answer: Option B
Solution:
Margin of safety = Sales quantity - Breakeven quantity = 7000 - 1500 = 5500 units.