02 April 2010
In the problem 40 % of margin of saftey represents 15000 units and Rs.60000/- profit.in the margin of saftey sales, the contribution doesnot include fixed cost so total contribution is profit only.contribution per unit is
60000/15000 = Rs.4 Per unit
and the BEP in unit is F.C / contribution per unit so 300000/4 = 75000 units
For 15000 units is 40 % of MOS so total margin of saftey is 15000/.4=37500 units
so total persent sales is (75000+37500)=112500 units