Question

Profit Rs.30000,marginal cost per unit Rs.8,selling price per unit Rs.10.the margin of safety will be

Answer 1

Answer:

Mos=profit /pv ratio

Profit =rs. 30000

Cost per unit rs. 8

Selling price per unit rs. 10

P/v ratio =cost /selling price per unit *100

Pv ratio =8×100/10=80

Mos=profit /p/v ratio

Mos = 30000/80

=₹375

Answer 2

Given:

Profit = Rs.30000

Cost per unit is Rs.8

Selling price per unit is Rs.10

To Find:

the margin of safety

Solution:

P/v Ratio = cost price per unit/ Selling price per unit×100

                  = 8 × 100/10

                  = 80

Margin of Safety = profit/ p/v ratio

                          = 30000/80

                          = Rs.375

Therefore, Margin of Safety is Rs.375.