Question

Q1l Profit Rs.30,000, Marginal cost per unit Rs 8,
selling price per unit Rs. 10. The Margin of Safety will
be​

Answer 1

Answer:

$4y99212 \times \frac{ \\ . = . \\ \\ . = 26332 { { {45y75y44 \\ }^{?} }^{2} }^{2} }{?}$

Ok

Answer 2

The answer is Rs. 150,000

Given,

Total profit = Rs. 30,000

The marginal cost per unit = Rs. 8

The selling price per unit = Rs. 10

To Find,

The Margin of Safety =?

Solution,

From the formula of P/V ratio, we have

P/V = (Selling price - Marginal cost) / Selling price

P/V = (10 - 8) / 10

P/V = (2 / 10)

P/V % = (2/10) x 100

P/V % = 20%

Now, the margin of safety = Profit / P/V ratio = 30000 / 20%

The Margin of Safety = (30000/20) x 100

The Margin of Safety = 1500 x 100

The Margin of Safety = 150,000

Hence, the margin of safety will be Rs. 150,000.