A company has fixed costs of ₹90,000 with sales of ₹3,00,000 and profit of ₹60,000. Margin of safety will be :

CS Executive · Cost and Management Accounting · PYQS · June 2017
A company has fixed costs of ₹90,000 with sales of ₹3,00,000 and profit of ₹60,000. Margin of safety will be :
(A) ₹1,00,000
(B) ₹1,20,000
(C) ₹1,50,000
(D) ₹1,30,000

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Marginal Costing

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