BEP & P/V Ratio

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Raj (Querist)
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24 November 2008
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.

Ajith Kumar

Ajith Kumar (Expert)
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24 November 2008 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

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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24 November 2008 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)