Question

If p/v ratio of product is 0.6 and profits is 9000.the margin of safety is​

Answer 1

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

Given :

Profit Volume ratio (P/V) = 0.6

Profit = Rs 9,000

To find :

Margin of safety

Solution :

$\fbox{Formula used :}$

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

Inserting values in above formula, we get

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

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

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

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

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

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

Answer 2

Given,

$\[\begin{array}{l}p/v\,ratio = 0.6\\profit = 9000\end{array}\]$

Solution,

Calculate the margin of safety.

Margin of safety$\[ = \frac{{profit}}{{p/v\,ratio}}\]$

$\[ = \frac{{9000}}{{0.6}}\]$

$\[ = \frac{{90000}}{6}\]$

$\[ = 15000\]$

Hence the margin of safety is $\[ 15000\]$.