Model 5: P/ V ratio, BEP, fixed cost, variable cost, margin of safety and profit
The cost data of a company are as follows:
|
Period |
Sales Rs. |
Profit Rs. |
|
I |
75,000 |
10,000 |
|
II |
1,00,000 |
15,000 |
You are required to compute:
(a) P/ V ratio; (b) BEP; (c) fixed cost; (d) profit when sales is Rs. 80,000; (e) sales required to earn a profit of Rs. 30,000; (f) margin of safety; and (g) variable cost of Period II.
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