The Sales and Profit during two years were as following:

Year Sales Profit 2000 Rs. 1,50,000 20,000 2001 Rs. 1,70,000 25,000 Calculate: (

i) P/V Ratio and Fixed Cost; (ii) Break-even Point; (iii) The Sales required to earn a profit of Rs. 40,000; (iv) Profit when sales are Rs. 2,50,000; (

v) Margin of Safety at a profit of Rs. 50,000; (vi) Variable Costs. [Ans.: (i) 25% and Rs. 17,500; (ii) Rs. 70,000; (iii) Rs. 2,30,000; (iv) Rs. 45,000; (v) Rs. 2,00,000; (vi) Year 2000 = Rs. 1,12,500 and year 2001 = Rs. 1,27,500.]