Question

Profit' 12,000 Fixed cost. 24.000 Margin of safety 30,000 P/V ratio is
O 0.3
O 04
0.25
O 0.35​

Answer 1

Answer:

0.4

Explanation:

p/v = c/sales

c= fc +profit

= 12000 + 24000

=36000

mos = profit/pv ratio

i.e p/v ratio = profit/mos

= 12000/30000

= 0.4