You are required to compute P/V Ratio, B.E.P and Margin of Safety from the following
data :
Sales (1,00,000 units) Rs.2,00,000
Variable cost Rs.80,000
Fixed cost Rs.40,000
3
Also evaluate the effect of (a) 20% increase in variable costs and (b) 20% increase in
quantity sold on the above mentioned three measures.
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