Selling price of a product is ₹40 per unit. Variable cost ratio is 50%. Fixed cost is ₹1,20,000 and units sold are 10,000. What is the Margin of Safety in percentage?

CS Executive · Corporate and Management Accounting · PYQS · June 2022
Selling price of a product is ₹40 per unit. Variable cost ratio is 50%. Fixed cost is ₹1,20,000 and units sold are 10,000. What is the Margin of Safety in percentage?
(A) 40%
(B) 60%
(C) 50%
(D) 20%

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Management Accounting

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