If the budgeted sales revenue is Rs.74,40,000 in the above product mix, what will be the margin of safety?
Margin of safety = sales – break even sales Here Sales is represented by budgeted sales of Rs.74,40,000 Break even sales = break even sales of t-shirts + break even sales of shirts = (2750*8) + (3300*14) = Rs.68,20,000 Margin of safety = Rs.74,40,000 – Rs.68,20,000 = Rs.6,20,000
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