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Calculate the margin of safety

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Reference no: EM133042790

Question - You are given the following information about two companies in 2010:

Particulars

Company A

Company B

Sales

Rs 50,00,000

Rs 50,00,000

Fixed expenses

Rs 12,00,000

Rs 17,00,000

Variable expenses

Rs 35,00,000

Rs 30,00,000

Required - You are required to calculate (For both companies)

a) Calculate the BEP (in Rs).

b) Calculate the P-V ratio.

c) Calculate the margin of safety.

Reference no: EM133042790

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