Jones is a small pottery business specialising in manufacturing ceramic plates. You are given the following financial information for March.
If it sold 55 plates per month, what would Jones’s Margin Of Safety Sales be for the month? Select ONE answer only:
- 20 units
- 25 units
- 30 units
- 40 units
Show your workings to arrive at your answer, and explain and justify your reasons:
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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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