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A company makes a single product which it sells at ?10 per unit. Fixed costs are ?48,000 per month and the product has a contribution to sales ratio of 40%. In a period when actual sales were ?1,40,000, the company's margin of safety in units was:

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Syllabus (with weightage)
A. Cost Management 20%
B. Strategic Cost Management Tools and Techniques 50%
C. Strategic Cost Management - Application of Statistical Techniques in Business Decisions 30%

Related Test: CMA Intermediate Exam: Cost and Management Accounting


A company makes a single product which it sells at ?10 per unit. Fixed costs are ?48,000 per month and the product has a contribution to sales ratio of 40%. In a period when actual sales were ?1,40,000, the company's margin of safety in units was:






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