Question
Currently, a firm sells 10,000 units at ₹20 each.
Variable cost is ₹12 per unit and Fixed Costs are ₹50,000. If the firm increases its selling price by 10%, but volume drops by 10%, what is the new Margin of Safety (Value)?Solution
The Profit/Volume (P/V) ratio expresses the contribution as a percentage of sales. 
The BEP (Value) is the sales level required to cover all fixed costs. The Margin of Safety is the difference between actual sales and break-even sales. 
Pawan and Bhanu started a business with their investments in the ratio 5:7. After 6 months, Raju joined the business with an inve...
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