Mr. R's sales and profit in 2015 were respectively ₹1,20,000 and ₹8,000. His sales and profit in 2016 were ₹1,40,000 and ₹13,000 respectively. In this case his margin of safety in 2016 was: (A) ₹32,000 (B) ₹52,000 (C) ₹8
CS Executive · Cost and Management Accounting · PYQS · December 2017
Mr. R's sales and profit in 2015 were respectively ₹1,20,000 and ₹8,000. His sales and profit in 2016 were ₹1,40,000 and ₹13,000 respectively. In this case his margin of safety in 2016 was: (A) ₹32,000 (B) ₹52,000 (C) ₹88,000 (D) ₹1,36,000
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Marginal Costing
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