10 NUBD is a manufacturer of Japanese pancakes. It's break-even sales is P250,000. It has avariable cost ratio of 75% and return on sales ratio of 6%. What is NUBD's margin of safetyratio? *20%24%25%O 19%

Let total sales = S Variable cost = 75% of total sales = 0.75S Return on sales = 6% Let fixed cost =…

Answered: NUBD is a manufacturer of Japanese…

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 8E

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NUBD is a manufacturer of Japanese pancakes. It's break-even sales is P250,000. It has a variable cost ratio of 75% and return on sales ratio of 6%. What is NUBD's margin of safety ratio? * O 20% O 24% O 25% O 19%