ABC Ltd. shows break even sales ₹40,500 and budgeted sales ₹50,000. Compute the margin of safety ratio ?

CS Executive · Cost and Management Accounting · PYQS · June 2018
ABC Ltd. shows break even sales ₹40,500 and budgeted sales ₹50,000. Compute the margin of safety ratio ?
(A) 19%
(B) 81%
(C) 1.81%
(D) Require more data to calculate

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Cost and Management Accounting

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