The following information is required for sub-questions

(a) and (b)

The company expects to sell A units in the next accounting period.

(a) The margin of safety is shown on the diagram by:
(i) k (ii) m (iii) on (iv) p

(b) The effect of an increase in fixed costs, with all other costs and revenues

remaining the same, will be:
(i) an increase in m;
(ii) an increase in k;
(iii) an increase in fF (iv) areduction in p.
(2 marks)
CIMA — Management Accounting Fundamentals

Transcribed Image Text:

Costs and revenues ($) 0 g h Output and sales (units) -n Total revenue m Total cost