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W Ltd makes leather purses. It has drawn up the following budget for its next financial period: Selling price per unit $11.60 Variable production cost
W Ltd makes leather purses. It has drawn up the following budget for its next financial period: Selling price per unit $11.60 Variable production cost per unit $3.40 Sales commission 5% of selling price Fixed production costs $430,500 Fixed selling and administration costs $198,150 Sales 90,000 units The margin of safety represents A. 5.6% of budgeted sales B. 8.3% of budgeted sales C. 11.6% of budgeted sales D. 14.8% of budgeted sales
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