Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A companys sales figure is 250,000 and its margin of safety ratio is 40%. Assuming that the fixed costs, the variable cost per unit and

A companys 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 companys margin of safety for sales of 325,000 will

be (2 marks):

a.

175,000

b.

70,000

c.

150,000

d.

100,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Louise Crawford, Stuart Manson

7th Edition

1473760186, 9781473760189

More Books

Students also viewed these Accounting questions