The following information relates to two divisions in a period of 1 month. Division N produces computer components, and Division P manufactures television components. Division P Output (units) Selling price per unit Variable cost per unit Fixed overhead for period Division N 9,000 £10 £7 £12,000 9,000 £12 £8 £12,000 Which of the following statements is correct? A) N has a higher break even point and lower margin of safety B) N has a lower break even point and higher margin of safety C) N has a lower break even point and lower margin of safety D) N has a higher break even point and higher margin of safety

The following information relates to two divisions in a period of 1 month. Division N produces computer components, and Division P manufactures television components. Division P Output (units) Selling price per unit Variable cost per unit Fixed overhead for period Division N 9,000 £10 £7 £12,000 9,000 £12 £8 £12,000 Which of the following statements is correct? A) N has a higher break even point and lower margin of safety B) N has a lower break even point and higher margin of safety C) N has a lower break even point and lower margin of safety D) N has a higher break even point and higher margin of safety

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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