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Numerical - Calculate margin of safety for given profit & P/V ratio
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Management Accounting
Q. Determine Margin of safety if Profit is Rs 15,000 and P/V ratio is 40%.
- Published on 11 Sep 15
a.
Rs 37,500
b.
Rs 33,000
c.
Rs 38,000
d.
None of the above
ANSWER: Rs 37,500
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Discussion
S dongare
-Posted on 06 Jun 22
Margin of safety =profit /P V ratio. 15000/40%= 37500
Dilip Kumar Jha
-Posted on 30 Aug 16
Margin of safety = Profit/P V Ratio = 15000/0.40
= Rs. 37500
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