Calculate B.E.P. from the following informations and ascertain the margin of safety:

Rs.

Fixed Costs for the year 2,40,000 Variable Cost p.u. 4 Sales for the year 6,00,000 Selling Price p.u. 20

[Ans.: (1) Sales Unit = 30,000 Units; (2) B.E.P. (Units) = 15,000 Units;

(3) Margin of Safety (Units) = 15,000 Units; (4) B.E.P. = Rs. 3,00,000;

(5) Margin of Safety = Rs. 3,00,000]

[Hint: (1) B. E. P. (Units) =

FC SP-VC ; (2) B. E. P. (Rs. ) =

FC × SP SP - VC

(3) M.O.S. (Units) = Sales (Units) - B.E.P. (Units);

(4) M.O.S. (Rs. ) = A Sales - BEP Sales.]