ACCA

CVP Analysis

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Section A AeroFly operates a regional airline. The company has fixed costs of $2,000,000 per month. The average Contribution to Sales (C/S) ratio across all flights is 40%. AeroFly's budgeted monthly revenue is $6,250,000. Calculate the Margin of Safety as a percentage of budgeted revenue. (Enter the percentage number only, e.g., 20).

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