Period I :- Sales= Rs 15000. Profit= Rs 400. Period II :- Sales= Rs 19000. Profit= Rs 1150. Calculate : a) P/V ratio. b) Profit when sales are Rs 12000. Cc) Sales required to earn a profit of Rs 2000. d) Margin of safety in period II. e) variable cost in period I.
- 1 Answers
- 3713 Views
- I also Faced
- E-Mail Answers
Answer / p.venketeswara
(a)P/V ratio=change in profit /change in sales*100. Now the following is the answer:-1150-400/19000-15000=750/4000*100=18.75%.(b) profit when sales are rupees 12000 the answer is (163) it is loss.but before calculating the above answer we should find out the fixed cost amount here fixed cost is 2412.50(approximately) 2413. fixed cost formula is sales *P/V ratio-profit.(c) sales required to earn profit of Rs 2000. sales is Rs 23536.(d) margin of sa fety=total sales-break even sales .so answer is Rs 6130. (e) variable cost for the period 1 is Rs 12187.
| Is This Answer Correct ? | 4 Yes | 0 No |
what is lease accounting?? please explain me....
what is the difference bitween Consolidated and Parent Companies?
I have received 75000 as retainer ship fees from ABC company what was the journal entry I have to pass in my books
what is mutual funds best way to answer?
what are the transactional entries have to be passed in Letter of credit
A business sold goods valued at R1000 excluding vat on credit to a customer. What would be the debit to the customers account if vat is 14% ?
What are the 4 phases accounting?
what is the meaning of ratio? Types of ratios?
how to see reoprt of miro booking in SAP FI
Have you ever made mis reports and what are they?
Do you have any professional experience in this field?
Closing entries of P&L account
Audit 
