Basic. W Ltd makes leather purses. It has drawn up the following budget for its next financial period:

Selling price per unit $11.60 Variable production cost per unit $3.40 Sales commission 5% of selling price Fixed production costs $430500 Fixed selling and administration costs $198150 Sales 90000 units The margin of safety represents

(a) 5.6% of budgeted sales

(b) 8.3% of budgeted sales

(c) 11.6% of budgeted sales

(d) 14.8% of budgeted sales CIMA Fundamentals of Management Accounting