Question
A company has fixed costs of ₹10 lakh, variable cost
per unit ₹50, and selling price per unit ₹75. If sales units are 60,000. Compute margin of safety units.Solution
BEP = Fixed Cost / Contribution per unit = ₹10L / (75 – 50) = ₹10L / ₹25 = 40,000 units MOS = Sales Units- BEP Units = 60,000- 40,000 = 20,000 units
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