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Costing question
P/V ratio 40% sales Rs 6500000 and BEP Rs 4750000 . Profit will be??
Replies (3)
profit is rs 190000
profit is 700000
profit =p/vratio(40%)*margin of safety(1750000)
margin of safety = total sales (6500000)-break even point sales(4750000)=1750000
profit =p/vratio(40%)*margin of safety(1750000)
margin of safety = total sales (6500000)-break even point sales(4750000)=1750000
YES, SORRY I TOOK WRONG FIGURE.
PROFIT IS RS 700000/-
MY CAL BY FINDING FIXED COST
1ST- BEP=FIX COST/PVR
FIX COST=4750000*40%=1900000/-
NOW PROFIT IS=SALES*PVR-FC
=6500000*40%-1900000
=700,000/-
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