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CVP analysis chapter 8

Mmike10y ago
hello john referring to your lecture notes on page 53 the question 2 on the test : i could not understand how you arrived at 20% as your answer...i seem to be getting 16.67% as the margin of safety (( 240000-200000)/240000*100 = 16.67%) alternatively in units: breakeven sales in units = 80000/(20-12) = 10000 Margin of safety = 12000-10000 = 2000 units please correct me if i am wrong
John MoffatJohn MoffatTutor10y ago#1
The answer is C. (I think you must have downloaded the notes some time ago, because originally there was a mistake and it did show the answer as 20%. However it was corrected a month or so ago and now it does show the correct answer.)
Mmike10y ago#2
ohh no....i have already printed the notes...i hope there aren't any other changes, is there?
John MoffatJohn MoffatTutor10y ago#3
No - I think that was the only one.
Mmike10y ago#4
ok thanks john
John MoffatJohn MoffatTutor10y ago#5
You are welcome :-)
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