Question

Fixed cost 4000 BEP 10,000PV ratio is

Answer 1

(a)P/V ratio. (b) break even sales (c) sales to earn a profit of Rs. 2,000 (d) Profit ... (at B.E.P. contribution is equal to fixed cost) ... P/V Ratio b. Sales & c. Margin of Safety. Fixed Cost = Rs.40, 000. Profit

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Answer 2

Explanation:

Solution :

Fixed cost 4000

BEP 10,000

PV ratio is ??

Suppose,

PV ratio = x

$\frac{ 4000 }{ x \% } =10000$

$\frac{4000\times 100}{x}=10000$

$\frac{400000}{x}=10000$

$400000=10000x$

$\frac{400000}{10000}=x$

$40=x$

$x=40$

P/V ratio = 40%

Therefore,P/V Ratio = 40%