Gayathri Ltd. maintain a margin of safety of 35% with an overall PV ratio of 25%.its fixed costs amount to Rs 4,50,000. 1)calculate the break-even sales? 2)calculate total sales? 3) what is the current profit? 4)compute new margin of safety if the sales volume is increased by9%?
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calculate total sales? 3) what is the current profit? 4)compute new margin of safety if the sales volume is increased by9%?
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. Calculate P/V Ratio and Margin of Safety. i. Sales. --. Rs. 10, 00,000 ii. Variable Cost. --. Rs. 4, 00,000 iii. Profit. --. Rs. 3, 00,000. Solution:.
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