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5. After explaining the relevance of P/V ratio and margin of safety in decision making, attempt the following question: Z Ltd. provides the following trading

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5. After explaining the relevance of P/V ratio and margin of safety in decision making, attempt the following question: Z Ltd. provides the following trading results: Year 2019-20 2020-21 Sale (Rs.) 20,00,000 18,00,000 Profit (Rs.) 12% of Sale 10% of Sale You are required to calculate: (i) (ii) (iii) (iv) Fixed Cost Break-Even point Amount of Profit, when sales are Rs. 24,00,000 Sales, when desire profit is Rs. 5,25,000 Margin of Safety at a profit of Rs. 3,60,000

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