If Actual sales are OMR 480000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)?   Select one: a. MS=72000 and MS (%)=16.42 b. MS=30000 and MS (%)=6.25 c. MS=60000 and MS (%)=15.15 d. MS=40000 and MS (%)=8.16

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5MC: A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the...
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If Actual sales are OMR 480000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and Variable cost per unit OMR 35, which of the following shows Margin of Safety (MS) as amount and as percentage (on sales)?

 

Select one:
a.

MS=72000 and MS (%)=16.42

b.

MS=30000 and MS (%)=6.25

c.

MS=60000 and MS (%)=15.15

d.

MS=40000 and MS (%)=8.16

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