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Dellmar Business Systems Limited Manufactures Paper Shredders, Each of Which

Question 22

Multiple Choice

Dellmar Business Systems Limited manufactures paper shredders, each of which sells for £52.00.Variable labour costs of manufacture are £8.50 and variable raw materials costs are £5.60 per shredder.Fixed production overheads for the 20X9 financial year are budgeted at £201 700 and fixed selling and administrative overheads are budgeted at £136 250.The company's directors plan to sell 10 000 units in the 20X9 financial year. What is the margin of safety, expressed as a percentage (to one decimal place) ?


A) 46.8%
B) 12.1%
C) 10.8%
D) 35.0%

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