Use the Following Information -If Expected Sales Are 50,000 Units, the Margin of Safety

Use the following information $$\begin{array} { | l | l r | } \hline \text { Fixed costs } & £ & 240,000 \\\hline \text { Selling price perunit } & £ & 18.00 \\\hline \text { Variable costs per unit } & £ & 12.60 \\\hline \text { Target profit } & £ & 120,000 \\\hline\end{array}$$
-If expected sales are 50,000 units, the margin of safety is closest to:

A) 11.1%
B) 12.5%
C) 30%
D) 50%

Correct Answer:

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