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Costing question

IPCC 282 views 3 replies
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
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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