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| This query is : Resolved
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Raj
( Author )
24 November 2008
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a) P/V ration
b) Break – Even point (in units and rupees)
c) Margin of safety (in units and rupees)
d) Variable cost per unit Rs. 15.00
e) Fixed cost per unit Rs. 9.00
f) Sales in units 10000
The selling price is fixed to yield 25% profit on cost.
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Ajith Kumar
( Expert )
24 November 2008
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PV Ratio-Contribution/Sales
15/30=50% Sale Price=(15+9)*125%
EEP=Fixed cost/pv ratio
(10000*9)/.5=180000
BEP in Value=180000/30=6000
Margin safty=Sales= BEP=300000-180000
120000
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CMA Jitendra Singh
( Expert )
24 November 2008
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PV ration = 50
BEP (In units) = 6000
BEP sales = 1,80,000
Mosafety = 300000-180000=120000/=
(Better if you could give total fixed cost ,here assumed =90000)
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