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11. Section - B from the following particulars calculate (a) Find Pla ratio (6) BEPlin units) (C) BEP ( in rupees) (d) Margin
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Answer #1
Statement showing Computations
Particulars Amount Per unit
Sales         150,000.00                    10.00
Less Variable Expenses            90,000.00                      6.00
Contribution Margin = Sales - VC            60,000.00                      4.00
Less Fixed cost            34,000.00
Net operating income            26,000.00
a) PV Ratio= 60,000/150,000 40.00%
b) BEP in units= 34000/4              8,500.00
c) BEP in $ = 8500*10            85,000.00
d)Margin of safety = 150,000 - 85,000            65,000.00
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