Question

6. You are required to compute P/V Ratio, B.E.P and Margin of Safety from the following
data :
T
Sales (1,00,000 units)
Rs.2,00,000
Variable cost
Rs.80,000
Fixed cost
Rs.40,000
2
Also evaluate the effect of (a) 20% increase in variable costs and (b) 20% increase in
quantity sold on the above mentioned three measures.
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Answer 1

Answer:

You are required to compute P/V Ratio, B.E.P and Margin of Safety from the following data: Sales (1,00,000 units) Variable cost Fixed cost Rs.2,00,000 Rs.80,000 Rs.40,000 Also evaluate the effect of (a) 20% increase in variable costs and (b) 20% increase in quantity sold on the above mentioned three measures.