Question

Margin of safety rs 80,000 profit rs 20,000 sales rs 3, 00,000 what is the amount of fixed cost ?

Answer 1

Answer:

P/V ratio =contribution x100/sales (*Contribution means the difference between sale price and variable cost). Here contribution is multiplied by 100 to arrive the percentage. For example, the sale price of a cup is Rs.80, its variable cost is Rs.60, then PV ratio is (80-60)× 100/80=20×100÷80=25%.

Answer 2

In Marginal costing, margin of contribution and ... Fixed cost Rs. 3,00,000 Variable cost per unit Rs. 5 Selling price .... (3) Sales volume to earn a profit of Rs...

Sales in units to earn a profit of Rs. 20,000. ... margin 80,000 Less Fixed cost 60,000 Profit 20,000Margin of ........