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WS Limited Currently Sells 15,000 Bookshelves at £50 Each

Question 20

Multiple Choice

WS Limited currently sells 15,000 bookshelves at £50 each. For each bookshelf, direct materials cost £15, direct labour costs £17.50 and variable overheads cost £2.50. WS Limited's fixed costs total up to £105,000. What is the margin of safety for WS Limited in number of bookshelves?


A) 7,000 bookshelves
B) 8,000 bookshelves
C) 22,000 bookshelves
D) 23,000 bookshelves

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