Question

sales equals to 1 lakh fixed cost equals to 20,000 variable cost equals to 60,000 what will be the calculation P/V ratio and bep​

Answer 1

Answer:

40%

Explanation:

sales-100000

(-) variable cost -60000

CONTRIBUTION-40000

P/V RATIO=CONTRIBUTION÷ SALES

40000÷100000

=40%

Answer 2

P/V ratio = 40%

Explanation:

Given:

Sales = 1,00,000

Variable cost = 60,000

Fixed cost = 20,000

Computation of contribution :

Contribution = Sales - Variable cost

Contribution = 1,00,000 - 60,000

Contribution = 40,000

Computation of P/V ratio

P/V ratio = (Contribution / Sales) x 100

P/V ratio = (40,000 / 1,00,000) x 100

P/V ratio = 40%

Break even sales = fixed cost / P/V ratio

Break even sales = 20,000 / 40%

Break even sales = 50,000

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