An organization manufactures a single product which has a variable cost of 36 per unit. The organizations
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An organization manufactures a single product which has a variable cost of
£36 per unit. The organization’s total weekly fixed costs are £81000 and it has a contribution to sales ratio of 40 per cent.
This week it plans to manufacture and sell 5000 units. What is the organization’s margin of safety this week (in units)?
(a) 1625 e
(b) 2750
(c) 3375
(d) 3500
(2 marks)
ACCA Financial Information for Management
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