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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