SV Ltd., a multi-product company furnishes you the following data relating to the year 2005: Assuming that
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SV Ltd., a multi-product company furnishes you the following data relating to the year 2005:
Assuming that there is no change in prices and variable cost and that the fixed expenses are incurred equally in the two half year periods, calculate for the year 2005:
(i). The P/V ratio
(ii). Fixed expenses
(iii). Break-even sales
(iv). Percentage of margin of safety.
Transcribed Image Text:
Sales Total Cost First half of the year Rs. 45,000 40,000 Second half of the year Rs. 50,000 43,000
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To calculate the PV ratio fixed expenses breakeven sales and the percentage of margin of safety for SV Ltd for the year 2005 we need to use the provid...View the full answer
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