safety margin

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For 2017 Imperial Surf has budgeted a turnover of 2,000 boards at £625 each ( = £1,250,000 turnover in total). The fixed costs are £450,000 a year and the variable costs are £250 per unit. What is the safety margin?

a. 20%

b. 40%

c. 45%

d. 50%

e. 55%

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