A company maintains a margin of safety of 25% on its
current sales and earns a profit of Rs. 30 lakhs per annum.
If the company has a profit volume (P/V) ratio of 40%, its
current sales amount to A. Rs. 200 lakhs;
B. Rs. 300 lakhs;
C. Rs. 325 lakhs;
D. None of the above.
- 1 Answers
- 14811 Views
- I also Faced
- E-Mail Answers
Answer Posted / lakshman001
Margin of Safety = profit/(p/v)ratio
= 30/.40
MOS = 75lacs
25%S = 75lacs
S =75/.25 = 300lacs
| Is This Answer Correct ? | 71 Yes | 6 No |
Post New Answer View All Answers
how standard costing techniques are applied in manufacturing sectors
What are the benefits ofparticipation in a depository?
Zee Ltd. uses material—A for the production of Product M. The safety stock of material A is 300 units; the supplier quotes a delivery delay of two or three weeks. If the company uses 500 to 800 units a week according to the activity levels, the re–order level of material–A will be A. 2300 units; B. 2400 units; C. 2700 units; D. 28 units.
how history is helpful for banking?
what are the content of purchase order?
what happens to each of the three primary financial statements when gross margin decreases?
How & When We Calculate Deffered Tax... Please Give me Some Example.?
what is the uniform public construction cost accounting act?
What is mamimum rate of CST applicable on Plastic Doors in NOIDA?
You are working in a Company but due to certain reasons you were not able to complete the work given to you on time, so to write a Letter of Apology to your Senior regarding it.
with out college degree con't we dc accounting job?
define holding company,public company, if the compnay be a public company what will the criteria? asked on 30/7/09
What are the steps involved in converting the trail balance of a foreign branch? Explain the steps involved in incorporating the foreign branch trail balance in HO books
what are the importance accounting entries for AP and AR process in interview..
Nike,Inc. has developed a variable-overhead rate of $10 per machine hour,and estimates fixed overhead $250,000 for production up to 100,000 units per year. If the production manager estimates 9,000 machine hours for the production of 90,000 units next year, what are estimated variable-overhead costs?
