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Rupinder Sells Crockery Sets for £80 Per Set

Question 22

Multiple Choice

Rupinder sells crockery sets for £80 per set. Variable costs of production are £38 and the fixed costs per crockery set are £6 based on the expectation that the normal level of production and sales will be 34,000 crockery sets per annum. A sales commission of £2 is paid to the company's sales representatives for every crockery set sold. What is Rupinder's margin of safety?


A) 5,100
B) 6,000
C) 28,000
D) 28,900

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