. The following information relates to a retail company for the year ending 31 December Budgeted sales revenue             500,000 Breakeven sales revenue           350,000 Budgeted contribution                300,000 Breakeven contribution              210,000   Which of the following is the company's margin of safety? £90,000 £140,000 £150,000 £210,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29E
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3. The following information relates to a retail company for the year ending 31 December

Budgeted sales revenue             500,000

Breakeven sales revenue           350,000

Budgeted contribution                300,000

Breakeven contribution              210,000

 

Which of the following is the company's margin of safety?

  1. £90,000
  2. £140,000
  3. £150,000
  4. £210,000
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