determine margin of safety if profit is rs 18000 and P/V ratio is 50%
Answer (1)
8th Nov, 2020
We know the Margin of Safety = Amount of profit / (p/v ratio)
Now in our given problem , Amount of profit is Rs.18000 and p/v ratio is 50%.Thus by substituting the values in the above formulae of Margin of Safety we get,
Margin of safety = 18000/50% =Rs.36000
Thus the Margin of safety for the given case is Rs.36000.
I hope my answer helps you. All the very best for your future endeavors!
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