Calculate from the following informations: 

1.

P/V Ratio. 

2.

B.E.P.

3.

Margin of Safety.

4.

Total Contribution Margin.

2006 2007 Rs. Rs.

Sales 1,20,000 1,80,000 Less: Variable Costs Contribution 66,000 1,08,000 Less: Fixed Costs 54,000 72,000 24,000 30,000 Profit Rs. 30,000 42,000

[Ans.: (1) P/V Ratio = (i) 2006 = 45%, (ii) 2007 = 40% (2) B.E.P. = (i) 2006 = Rs. 53,333,

(ii) 2007 = Rs. 75,000 (3) M.O.S. = (i) 2006 = Rs. 66,667, (ii) 2007 = Rs. 1,05,000 (4) Total Contribution Margin = Rs. 1,26,0001

[Hint: (1) P/V Ratio =

SP — VC SP × 100; (2) B. E. P. =

FC P/V Ratio;

(3) M. O. S. =

Profit P/V Ratio; (4) TCM = P/V Ratio × Sales (for both years, then both will be added)]