The following informations are available regarding a company:

Budgeted Production 1,00,000 units Variable Cost Rs. 20 p.u.

Fixed Costs 10,00,000 Profit 25% on Cost You are required to calculate the following:

1.

P/V Ratio 2.

B.E.P.

[Ans.: (1) P/V Ratio = 46.67%, (2) B.E.P. = Rs. 21,42,704,

(3) Sales = Rs. 37,50,000]

[Hint: (1) P/V Ratio =

Sales — VC Sales × 100: (2) B. E. P. =

FC P/V Ratio ]