Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and variable costs are £12 per unit. What is the margin of safety? Select one: O a. 25.0% o b. 11.1% O c. 40.0% O d. 66.7%

Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and variable costs are £12 per unit. What is the margin of safety? Select one: O a. 25.0% o b. 11.1% O c. 40.0% O d. 66.7%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How to do this? 11

Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a
year and variable costs are £12 per unit.
What is the margin of safety?
Select one:
O a. 25.0%
O b. 11.1%
O c. 40.0%
o d. 66.7%

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