Budgeted sales are 12,000 units and break-even is 9,000 units. What is the margin of safety?
A3,000 units
B9,000 units
C21,000 units
D4,000 units
Answer & Solution
Correct answer: A. 3,000 units
Budgeted sales less break-even sales is 12,000 - 9,000 = 3,000 units.
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