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Querist : Anonymous

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Querist : Anonymous (Querist)
17 June 2013 What is margin of safety ??? what is difference between p/v ratio and margin of safety ??? please help ???Much confused ?
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
17 June 2013 Margin of safety nothing but difference between your actual sale and Break even sales

In Break even sales, your profit & loss will be zero

In the margin of safety your contribution and profit will be the same


PV ratio nothing but the percentage of contribution on your sale price
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Querist : Anonymous

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Querist : Anonymous (Querist)
19 June 2013 thank you so much sir...
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