A company’s sales figure is £250,000 and its margin of safety ratio is 40%. Assuming that the fixed costs, the variable cost per unit and the selling price per unit do not change, the company’s margin of safety for sales of £325,000 will be:     a. £175,000   b. £150,000    c. £100,000   d. £70,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  1. A company’s sales figure is £250,000 and its margin of safety ratio is 40%. Assuming that the fixed costs, the variable

    cost per unit and the selling price per unit do not change, the company’s margin of safety for sales of £325,000 will be:

     

      a.

    £175,000

      b.

    £150,000 

      c.

    £100,000

      d.

    £70,000

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