Q282
The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs 30,00,000 then Break Even Point in Rs will be
A.
Rs 9,00,000
B.
Rs 18,00,000
AnswerC.
Rs 5,00,000
D.
None of the above
Answer: Option B
Solution
Answer: Option B
Solution:
Break even point = Sales - Margin of Safety = 3000000 * (100% - 40%)
= Rs. 1800000