Q.4.The two firms, X Ltd. And Y Ltd., sell identical products in the market. Their budgeted profit and loss accounts for the year ending on 31^st March 2016 are as follows:

X Ltd. (in Rs.)

Y Ltd. (in Rs.)

Sales

400000

400000

(-) Variable cost

320000

280000

(-) Fixed Cost

40000

360000

80000

360000

Net Profit

40000

40000

You are required to calculate

(a)BEP and margin of safety for X Ltd.

(b)BEP and margin of safety for Y Ltd

State which company is better in achieving BEP and margin or safety