Question

A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs. 12 Variable cost per unit - Rs. 8 Fixed cost for a period - Rs. 98,000 Budgeted sales for a period - 30,000 units The margin of safety, expressed as a percentage of budgeted sales is close to:

A 20%
B 25%
C 73%
D 125%
E none of these
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