Accountancy, asked by raidasgupta31, 1 month ago

Question 13
If Profit is 10%, and P/V Ratio is 40%, the Margin of Safety is what?​

Answers

Answered by padmanabhajuad
0

Explanation:

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Answered by GraceS
1

\sf\huge\bold{Answer:}

Given :

Profit Volume ratio (P/V) = 40%

Profit = 10%

To find :

Margin of safety

Solution :

\fbox{Formula used :}

 \bf\red{:⟶margin \: of \: safety =  \frac{profit}{P/V\:ratio} } \\

Inserting values in above formula, we get

 \bf{:⟶margin \: of \: safety =  \frac{10\%}{40\%} } \\

 \bf{:⟶margin \: of \: safety =  \frac{10×100}{40×100} } \\

\bf{:⟶margin \: of \: safety =  }\displaystyle{\bf { \cancel{ \frac{1000}{4000} }}}

 \bf{:⟶margin \: of \: safety = \frac{1}{4}  } \\

 \bf{:⟶margin \: of \: safety = 0.25  } \\

\tt \huge\mathrm{Margin \: Of \: Safety} \\

 \huge\mathcal\purple{=0.25} \\

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