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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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