determine margin of safety if profit is rs 18000and PV ratio is 50,,%
Answer (1)
21st Oct, 2020
The margin of safety is the difference between the total sales and break-even sales. It may be expressed in monetary terms or as a percentage, i.e., the margin of safety in relation to total sales. It is an extremely valuable guide and indicates the financial strength of the business.
Margin of safety = profit / PV ratio
So according to your quoted details-
Margin of safety = 18000/50
= 360
Which is desired answer.
I hope this helps.
Regards
Madhur
Margin of safety = profit / PV ratio
So according to your quoted details-
Margin of safety = 18000/50
= 360
Which is desired answer.
I hope this helps.
Regards
Madhur
Comments (0)
Related Questions
Trending Articles/News
TS LAWCET Rank-Wise College List 2025 - Download PDF
1 minute ago
SRMJEEE Marks vs Rank 2025 - Calculate Rank Using Scores
7 minutes ago
