Question
A company has achieved total sales of ₹10,00,000
during the year. The variable costs incurred amount to ₹6,00,000, while the fixed costs are ₹2,50,000. Based on this information, you are required to calculate: The Profit–Volume (P/V) Ratio, and Margin of Safety (MOS) in monetary terms.Solution
Contribution = 4,00,000. P/V ratio = 40%. BEP = FC / PVR = 2,50,000/0.4 = 6,25,000. MOS = Sales – BEP = 10,00,000 – 6,25,000 = ₹3,75,000.
More Accounts Questions
Fill the blank 2.
Find the appropriate word.
3
Find the appropriate word.
What did the friends do when they saw the chocolate sea?
Find the appropriate word.
Find the appropriate word.
Even small oysters can produce reasonably large pearls, although the older and larger the shell, the great the chance of finding a good-sized pearl.
Her gratuity and provident fund were settled in 2005. Since , her request for pension was not considered.
Find the appropriate word.
