Help!! Margin of Safety Question
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alexp19740
Registered Posts: 16 Dedicated contributor 🦉
Hoping someone can help with this question:-
Z plc makes a single product which it sells for £16 per unit. Fixed costs are £76800 per month and the product has a contribution to sales ratio of 40%. In a period when budgeted sales were £224,000, what is the margin of safety in UNITS????
Z plc makes a single product which it sells for £16 per unit. Fixed costs are £76800 per month and the product has a contribution to sales ratio of 40%. In a period when budgeted sales were £224,000, what is the margin of safety in UNITS????
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