PLZZZZ HELP

This topic has 5 replies, 5 voices, and was last updated 13 years ago by Sangria9.

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June 12, 2012 at 4:08 pm #53373
arvind0708
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The budgeted sales for Fittler Ltd this year are 20,000 units and it must sell 12,000
units to break even. It therefore has a margin of safety, expressed as a percentage,
closest to:
Can anyone tell me the answer for this question.
June 13, 2012 at 8:39 am #100268
John Moffat
Keymaster
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40%
June 13, 2012 at 11:59 am #100269
arvind0708
Member
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well how you got 40%………..
June 13, 2012 at 12:56 pm #100270
rhwesley
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1-12000/20000
June 14, 2012 at 11:19 am #100271
arslan9898
Member
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Hi i think this question is relate to breakeven which is not include in this time syllabus. I am right?
June 20, 2012 at 2:52 pm #100272
Sangria9
Member
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Margin of safety as a percentage equals (budgeted sales – breakeven sales)/budgeted sales x 100%.
So percentage will be equal to (20000-12000)/20000*100% = 40%.
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