A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2019 · Q261 Mark

The following information is available in respect of a product. per unit $ selling price 25 variable costs 15 contribution 10 Production is 50 000 units. The fixed costs are $300000. The margin of safety is 20000 units. The directors propose to increase the unit selling price by 10%. What will be the percentage increase in the margin of safety?

A13.6%

B20%

C30%

D36.4%

✓ Correct answer

C: 30%

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2019 Paper 1 Variant 2, question 26.

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