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John Moffat.
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sylvanascicluna
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I came across a question and requires me to find the margin of safety. The question has three different product and for each line the company has a fixed cost. In addition the company has another fixed cost on all lines. I need to find the margin of safety of one particular product. Shall I take the total fixed cost + the cost associated with that product or shall i just take the fixed cost on that particular line?
John Moffat
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I can’t h help without seeing the whole question. If it is a past exam question or a question in the BPP Revision Kit then tell me which one and I can look at it.
I assume that you have watched my free lectures on CVP analysis?
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