What is the margin of safety, if profit is equal to ₹40,000 and P/V ratio is 25% —
CS Executive · Cost and Management Accounting · PYQS · December 2014
What is the margin of safety, if profit is equal to ₹40,000 and P/V ratio is 25% —
Answer & Explanation:
Correct Answer: Option (A)
Correct answer: (A) ₹1,60,000. Margin of safety = profit/PV ratio = 40,000/25% = 1,60,000.
Topics: Marginal Costing
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