marginal costing
This query is : Resolved
28 April 2010
P V RATIO : 40%
MARGIN OF SAFTY : 40%
SALES VALUE : 1.5 CRORE
FIND
1)BEP
2)FIXED COST
3)PROFIT
MARGIN OF SAFTY : 40%
SALES VALUE : 1.5 CRORE
FIND
1)BEP
2)FIXED COST
3)PROFIT
28 April 2010
BEP - Rs 90 Lakhs
Fixed Cost - Rs. 24 Lakh
Profit - 36 Lakhs
Fixed Cost - Rs. 24 Lakh
Profit - 36 Lakhs
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
BEP= Fixed cost/pv ratio
= 36 lakh/40%=90 lakh
therefore,
BEP= Rs. 90 lakh
fixed cost= Rs.36 lakh
Profit= Rs. 24 lakh
regards,
CA Jatin Bansal
Chandigarh
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
BEP= Fixed cost/pv ratio
= 36 lakh/40%=90 lakh
therefore,
BEP= Rs. 90 lakh
fixed cost= Rs.36 lakh
Profit= Rs. 24 lakh
regards,
CA Jatin Bansal
Chandigarh
29 April 2010
Thank u for correcting me, by mistake i typed Rs 36 Lakhs (profit) & 24 Lakhs (FCost)
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