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Find break even point and margin of safety

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Reference no: EM132549178

The following are the estimates for the year 2004-05 relating to a Manufacturing concern

Sales unit - 25000

Fixed Cost - 1, 20,000

Sales Value - 4, 00,000

Variable cost -Rs 8 per unit

You are required to

Question (a) Find out P/V Ratio, Break Even Point and Margin of Safety

Question (b) Calculate the Revised P/V Ratio .Break Even Point and Margin of Safety in each of the following cases

(i) Increase of 10 % in Variable Cost

(ii) Decrease of 10 % in selling price

(iii) Increase of sales volume by 5000 units

(iv) Increase in Fixed cost by Rs 15,000

Reference no: EM132549178

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