24 November 2008
a) P/V ration b) Break – Even point (in units and rupees) c) Margin of safety (in units and rupees) d) Variable cost per unit Rs. 15.00 e) Fixed cost per unit Rs. 9.00 f) Sales in units 10000
The selling price is fixed to yield 25% profit on cost.
24 November 2008
PV Ratio-Contribution/Sales 15/30=50% Sale Price=(15+9)*125% EEP=Fixed cost/pv ratio (10000*9)/.5=180000 BEP in Value=180000/30=6000 Margin safty=Sales= BEP=300000-180000 120000