Day: November 18, 2018

Business Studies Multiple Choice Question – 18 November 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Jones is a small pottery business specialising in manufacturing ceramic plates. You are given the following financial information for March.

Table 37

If it sold 55 plates per month, what would Jones’s Margin Of Safety Sales be for the month? Select ONE answer only:

  1. 20 units
  2. 25 units
  3. 30 units
  4. 40 units

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 3 – Margin Of Safety = actual sales – break-even sales ie 55 units – 25 units = 30 units

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