how to calculate the p/v ratio, break even point and the
margin of safety ratio when following statements are given.
sales(1,00,000 units @ Rs.10/-) 10,00,000
Variable costs 5,00,000
contribution 5,00,000
Fixed costs 3,00,000
Net Profit 2,00,000
Answer Posted / nawrid
p/v ratio=contribution/sales*100
=500000/1000000*100
=50%(percentage of sales)
BEP in cost=Fixed cost/pv ratio
=300000/50%
=600000
BEP in Quantity=Fixed cost/Contribution per unit
=300000/5
=60000
Margin in Safety =Actual sales-BEP sales
=1000000-600000
=400000
Is This Answer Correct ? | 28 Yes | 5 No |
Post New Answer View All Answers
What is Statement in Lieu of Prospectus?
Expand BSBDA.
What's MUDRA bank yojana
What is 'central plan'?
What Is Consumer Bank?
Explain about trims.
Differentiate between Balance of Trade and Balance of Payment?
Do you know what negative interest rate policy is? Why does Japan adopt it?
What is LPG all about? When was it started?
I am studing in MEB(MBA+IT), In our course there is no specialation and I want to go in finance, in june-july i am going to do intersip program so what would i do to make arrengement for my summer training
Explain the source of income for niacl?
What is the source of income of government?
What do you mean by term 'casa' related to bank?
By Using Visualizations,what Goals Can Users Can Achieve?
How Does The Stress Test Account For Non-performing Loans?