Question

M S. Jevanthi and Co.. Madurai budgeted a
production of 1,000 units at a variable cost of Rs. 30
each. The fixed costs are Rs.4,000. The selling price
is fixed to yield 25% profit on cost. You are required
to calculate:
(a) P/V Ratio
(b) Break Even Point
(c) Margin of Safety​

Answer 1

M S. Jevanthi and Co.. Madurai budgeted a

production of 1,000 units at a variable cost of Rs. 30

each. The fixed costs are Rs.4,000. The selling price

is fixed to yield 25% profit on cost. You are required

to calculate:

(a) P/V Ratio

(b) Break Even Point

(c) Margin of Safety