marginal costing

This query is : Resolved

Share Report Follow Query Ask a Query

pankaj kumar gupta

pankaj kumar gupta (Querist)
Follow

28 April 2010 P V RATIO : 40%

MARGIN OF SAFTY : 40%

SALES VALUE : 1.5 CRORE

FIND

1)BEP
2)FIXED COST
3)PROFIT

CMA Chandan Singh

CMA Chandan Singh (Expert)
Follow

28 April 2010 BEP - Rs 90 Lakhs
Fixed Cost - Rs. 24 Lakh
Profit - 36 Lakhs

Professional Careers Academy

Professional Careers Academy (Expert)
Follow

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

CA Shiv

CA Shiv (Expert)
Follow

28 April 2010 agree with Mr. Jatin.....

CMA Chandan Singh

CMA Chandan Singh (Expert)
Follow

29 April 2010 Thank u for correcting me, by mistake i typed Rs 36 Lakhs (profit) & 24 Lakhs (FCost)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Akhila Ajayan

siddhesh satardekar

shreesh acharya

Amit Singh

Pushkar Nagda

Subscribe Now

marginal costing

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA