ABC Ltd. shows a break-even sales of ₹42,500 and a budgeted sales of ₹50,000. Identify the margin of safety ratio :

CS Executive · Cost and Management Accounting · PYQS · December 2019
ABC Ltd. shows a break-even sales of ₹42,500 and a budgeted sales of ₹50,000. Identify the margin of safety ratio :
(A) 15%
(B) 81%
(C) 1.81%
(D) Require more information to calculate

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Marginal Costing

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