Question

The P/V ratio of a product is 0.8 & profit Rs.8000.The margin of safety is​

Answer 1

$\sf\huge\bold{Answer:}$

Given :

Profit Volume ratio (P/V) = 0.8

Profit = Rs 8,000

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

$\bf{:⟶margin \: of \: safety = \frac{Rs 8000}{0.8} }$

$\bf{:⟶margin \: of \: safety = \frac{Rs 8000}{8} ×10}$

$\bf{:⟶margin \: of \: safety = }$$\displaystyle{\sf { \cancel{ \frac{Rs80000}{8} }}}$

$\bf{:⟶margin \: of \: safety = Rs.10000 }$

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

$\huge\mathcal\purple{=15000}$