Related QuestionsVIEW ALL [2]
The following information is obtained from ABC Ltd. and XYZ Ltd. in a year.
| Particulars | ABC Ltd.(Rs.) | XYZ Ltd.(RS.) |
| Sales | 3,00,000 | 3,00,000 |
| (-) Variable Cost | 2,00,000 | 2,25,000 |
| (- ) Fixed Cost | 50,000 | 25,000 |
| Estimated Profit | 50,000 | 50,000 |
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.
