The following information is obtained from ABC Ltd. and XYZ Ltd. in a year.
|Particulars||ABC Ltd.(Rs.)||XYZ Ltd.(RS.)|
|(-) Variable Cost||2,00,000||2,25,000|
|(- ) Fixed Cost||50,000||25,000|
You are required to calculate for each company.
(i) Profit Volume Ratio and Break Even Point.
(ii) Margin of Safety.
The Directors of Steel Manufacturing Co. gives the following information.
|Sales - (1,00,000 units)||(Rs.) 1,00,000|
|Variable Costs||(Rs.) 40,000|
|Fixed Costs||(Rs.) 50,000|
(i) Find out PN Ratio, Break Even Point & Margin of Safety.
(ii) In case of 20% increase In Physical Sales Volume, calculate P/V Ratio, Break Even Point & Margin of Safety.