To determine the margin of safety ratio from the given data, let's solve step by step.

Provided Data:

1. Sales Price per Unit = $30
2. Variable Cost per Unit = $10
3. Units Sold = 750
4. Fixed Costs = $10,000

Step 1: Calculate Total Sales

$\text{Total Sales} = \text{Units Sold} \times \text{Sales Price per Unit}$ $\text{Total Sales} = 750 \times 30 = 22,500$

Step 2: Calculate Contribution Margin Per Unit

$\text{Contribution Margin per Unit} = \text{Sales Price per Unit} - \text{Variable Cost per Unit}$ $\text{Contribution Margin per Unit} = 30 - 10 = 20$

Step 3: Calculate Break-Even Sales in Dollars

Break-even sales are calculated as: $\text{Break-Even Sales} = \frac{\text{Fixed Costs}}{\text{Contribution Margin per Unit}} \times \text{Sales Price per Unit}$ $\text{Break-Even Sales} = \frac{10,000}{20} \times 30 = 15,000$

Step 4: Calculate Margin of Safety

Margin of safety is the difference between actual sales and break-even sales: $\text{Margin of Safety} = \text{Total Sales} - \text{Break-Even Sales}$ $\text{Margin of Safety} = 22,500 - 15,000 = 7,500$

Step 5: Calculate Margin of Safety Ratio

$\text{Margin of Safety Ratio} = \frac{\text{Margin of Safety}}{\text{Total Sales}} \times 100$ $\text{Margin of Safety Ratio} = \frac{7,500}{22,500} \times 100 = 33.33\%$

Final Answer:

The margin of safety ratio is 33%, which corresponds to option B.

Would you like a detailed breakdown of any specific step? Here are related questions to deepen your understanding:

1. What does the margin of safety ratio indicate in financial analysis?
2. How does an increase in fixed costs affect the margin of safety?
3. Can the margin of safety ratio be negative, and what does that signify?
4. How do variable costs per unit influence the contribution margin?
5. Why is the margin of safety important for decision-making?

Tip: Always calculate the contribution margin first when solving for break-even and margin of safety metrics.