Numerical - Calculate margin of safety for given profit & P/V ratio

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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