28 April 2010
as sales is Rs. 1.5 crore and p/v ratio is 40 % so total contribution is Rs. 60 lakh.
as sales is Rs. 1.5 crore and margin of safety is 40 % so margin of safety is Rs. 60 lakh. as profit = Margin of safety * p/v ratio so here profit is = Rs. 60 lakh *40 % = 24 Lakh
as total contribution= profit + fixed cost so fixed cost= 60 lakh-24 lakh= 36 lakh
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