Interested to Buy Any Domain ? << Click Here >> for more details...
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
- 4 Answers
- 40434 Views
- CA, I also Faced
- E-Mail Answers
Answer Posted / shashi kumar b.com student
P/v ratio =contribution/sales * 100
=500000/1000000*100
P/v Ratio =50%
BEP=fixed cost/contribution*sales
=300000/500000*1000000
BEP =6000000
Margin of safety = sales-BEP
=1000000-6000000
Margin of safety=5000000
| Is This Answer Correct ? | 0 Yes | 1 No |
Post New Answer View All Answers
What is the usage of IFSC Code?
What is the difference between Partnership and Company ?
What is Meant by at Premium in Issuance of Shares?
What are RTGS and NEFT?
What is capital gearing ratio? What does it indicate?
What is the function of blue chip stock?
What is NATO? List some members of NATO?
Name some state co- operative banks?
What is Corporate finance, Corporate governance, Role of SEBI, Ratio analysis in terms of equity and capital structuring? Please post answers as soon as possible. thankyou.
What is dcf?
What is the difference between wealth, cash & money?
Tell something about bank regulation act?
How can NPAs be reduced?
Do you know the currency of different countries?
what is the role of equity analyst?
