how to calculate the p/v ratio, break even point and the margin of safety ratio

how to calculate the p/v ratio, break even point and the
margin of safety ratio when following statements are given.
sales(1,00,000 units @ Rs.10/-) 10,00,000
Variable costs 5,00,000
contribution 5,00,000
Fixed costs 3,00,000
Net Profit 2,00,000

Question Posted / bhuvaneshwari

4 Answers
40432 Views
CA, I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

how to calculate the p/v ratio, break even point and the margin of safety ratio when following stat..

Answer / sethusangurajan

p/v ratio=contribution/sales*100
=5,00,000/10,00.000*100
=50%
BEP =fixed cost/pv ratio
=3,00,000/50%
=6,00,000
margin of safety=profit/pv ratio
=2,00,000/50%
=4,00,000

Is This Answer Correct ?

71 Yes

6 No

how to calculate the p/v ratio, break even point and the margin of safety ratio when following stat..

Answer / nawrid

p/v ratio=contribution/sales*100
=500000/1000000*100
=50%(percentage of sales)
BEP in cost=Fixed cost/pv ratio
=300000/50%
=600000
BEP in Quantity=Fixed cost/Contribution per unit
=300000/5
=60000
Margin in Safety =Actual sales-BEP sales
=1000000-600000
=400000

Is This Answer Correct ?

28 Yes

5 No

how to calculate the p/v ratio, break even point and the margin of safety ratio when following stat..

Answer / vedika juyal

*p/v ratio=contribution margin/sales*100

Is This Answer Correct ?

12 Yes

1 No

how to calculate the p/v ratio, break even point and the margin of safety ratio when following stat..

Answer / shashi kumar b.com student

P/v ratio =contribution/sales * 100
=500000/1000000*100
P/v Ratio =50%

BEP=fixed cost/contribution*sales

=300000/500000*1000000
BEP =6000000

Margin of safety = sales-BEP
=1000000-6000000
Margin of safety=5000000

Is This Answer Correct ?

0 Yes

1 No

Post New Answer

More Banking Finance Interview Questions

hi this is renuka i also face an interview in syndicate bank po of 23 aug 2009 plz suggest me the expected question what may they ask to me. my email id is renuka.ahlawat@gmail.com

0 Answers Syndicate Bank,

what is difeerence between factoring and leasing?

6 Answers

What is the difference between Banks and NBFCs (Non Banking Finance Companies)?

0 Answers Nabard,

Credit card debt could lead to a lot of financial pressure?

1 Answers

Explain Openpages Regulatory Compliance Management?

0 Answers IBM,

What is the education qualification required for po exam?

0 Answers

Where have you come from and what is famous in your city?

0 Answers

What is Right to information Act?

1 Answers

Is there any act if a cheque is bounced?

0 Answers RBI,

hi im vinuta, i want to know the meaning of liquidity? i know that it means converting the assets into cash, but i want to know something more than that, so kindly help me?

4 Answers

First indian company issued ADR,GDR,IDR

0 Answers Banking,

differnce between the authorised capital,subscribed capital.isuued capital and paid up capital?

1 Answers Cipla,

For more Banking Finance Interview Questions Click Here