Question

All of these
23. If P/V ratio is 40% of a product is 0.6 and profit is '9,000. The margin of safety
(A) 15.000
(B) 5400
(C) 22,500
(D) 3600​

Answer 1

Answer:

option c 22500.

Explanation:

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Answer 2

$\sf\huge\bold{Answer:}$

For Case 1 [P/V = 40% ]

$\fbox{option C is correct answer}$

For Case 2 [P/V = 0.6]

$\fbox{option A is correct answer}$

Given :

Profit Volume ratio (P/V) = 40% [in percentage ]

Profit Volume ratio (P/V) = 0.6 [in decimal form ]

Profit = Rs 9,000

To find :

Margin of safety

Solution :

$\fbox{Formula used :}$

$\bf\red{:⟶margin \: of \: safety = \frac{profit}{P/V\:ratio} }$

$\fbox{Case 1 [when P/V ratio is 40 percent.]}$

Inserting values in above formula, we get

Inserting values in above formula, we get

$\bf{:⟶margin \: of \: safety = \frac{Rs 9000}{40\%} }$

$\bf{:⟶margin \: of \: safety = \frac{Rs 9000}{40} × 100}$

$\bf{:⟶margin \: of \: safety = }$$\displaystyle{\bf { \cancel{ \frac{Rs 900000}{40} }}}$

$\bf{:⟶margin \: of \: safety = Rs 22500 }$

$\tt \huge\mathrm{Margin \: Of \: Safety}$

$\huge\mathcal\purple{=Rs.22500}$

$\fbox{Case 2 [when P/V ratio is 0.6 ]}$

$\bf{:⟶margin \: of \: safety = \frac{Rs 9000}{0.6} }$

$\bf{:⟶margin \: of \: safety = \frac{Rs 9000}{6} × 10}$

$\bf{:⟶margin \: of \: safety = }$$\displaystyle{\bf { \cancel{ \frac{Rs90000}{6} }}}$

$\bf{:⟶margin \: of \: safety = Rs 15000 }$

$\tt \huge\mathrm{Margin \: Of \: Safety}$

$\huge\mathcal\purple{=Rs.15000}$