Accountancy, asked by shindekaushal1004, 1 month ago

39. Sales are 3,20,000, fixed costs are 80,000 and variable costs are 1,20,000. What is the
safety margin?
(a) * 18,900
(b) *20,000
tot 1,92,000
(d) * 1,28,000
(e) * 1,31,000

Answers

Answered by Alzir
10

Explanation:

Margin of safety = actual sales - BEP

P/V ratio= sales - variable costs/ sales × 100

= 3,20,000 - 1,20,000 / 3,20,000 × 100

= 62.5%

BEP = Fixed cost / P/V ratio

= 80,000/62.5 × 100

= 1,28,000

Margin of safety = actual sales - BEP

= 3,20,000 - 1,28,000

= 192,000

Margin of safety = 1,92,000

Therefore, (c) 1,92,000

Margin of safety = 1,92,000

Answered by Sauron
13

Answer:

(option) 1,92,000

Explanation:

Sales are 3,20,000

Fixed costs are 80,000

Variable costs are 1,20,000

Solution :

P/V Ratio = S - V / S × 100

⇒ 3,20,000 - 1,20,000 / 3,20,000 × 100

⇒ 62.5%

P/V Ratio = 62.5%

Break Even Point = Fixed Cost / P/V Ratio

⇒ 80,000/62.5 × 100

⇒ 1,28,000

Break Even Point = 1,28,000

Margin safety = Sales - Break even sales

⇒ 3,20,000 - 1,28,000

⇒ 1,92,000

Margin safety = 1,92,000

(option) 1,92,000

Margin safety = 1,92,000

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