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Related QuestionsVIEW ALL [2]
ABC Company Ltd. furnishe.s the following data.
(Rs.)
| Sales | 1,50,000 |
| Variable Overheads | 1,20,000 |
| Gross Profit | 60,000 |
| Fixed Overheads | 20,000 |
| Net Profit | 40,000 |
Find: (i) P/V Ratio, (ii) BEP, (iii) Net Profit when the Sales are Rs. 4,00,000, (iv) Sales required to earn a Profit of Rs. 80,000, (v) Margin of Safety when the Sales are Rs. 4,00,000.
The following data relate to a company:
| Year Ended | Total Sales (Rs.) | Total Cost (Rs.) |
| 31-3-2017 | 22,23,000 | 19,83,600 |
| 31-3-2018 | 24,51,000 | 21,43,200 |
Assuming stability in prices, with variable costs carefu11y controlled to reflect determined relationships and an unvarying figure for fixed costs, calculate :
(i) The P/V ratio, (ii) Fixed Cost, (iii) Fixed Cost as % of Sales, (iv) BEP, and (v) Margin of Safety for years 2017 and 2018.
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