Question

If Selling Price is 9 per unit, variable cost is 5 per unit and fixed cost is 100000, what is the Margin of safety in Qty if the budgeted units are 1,00,000.

A 75000 Correct Answer Incorrect Answer
B 50000 Correct Answer Incorrect Answer
C 25000 Correct Answer Incorrect Answer
D 63500 Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

BE Qty = Fixed Cost/ Contribution per unit = 100000/4 = 25000 units and MOS = 100000 – 25000 = 75000 units.

Practice Next

Relevant for Exams:

×
×