B Com Exam > B Com Questions > A Company produces 300 units of a single arti...
Start Learning for Free
A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000?
Most Upvoted Answer
A Company produces 300 units of a single article and sells it at ₹ 200...
Solution:
Given,
Number of units produced = 300
Selling price per unit = ₹ 200
Marginal cost per unit = ₹ 120
Fixed cost for the month = ₹ 8,000
1. Calculation of P/V Ratio:
P/V Ratio = (Contribution / Sales) x 100
Contribution = Selling price per unit - Marginal cost per unit
Contribution = ₹ 200 - ₹ 120
Contribution = ₹ 80
Sales = Number of units produced x Selling price per unit
Sales = 300 x ₹ 200
Sales = ₹ 60,000
P/V Ratio = (₹ 80 / ₹ 200) x 100
P/V Ratio = 40%
2. Calculation of B.E.P:
B.E.P (in units) = Fixed cost / Contribution per unit
Contribution per unit = Selling price per unit - Marginal cost per unit
Contribution per unit = ₹ 200 - ₹ 120
Contribution per unit = ₹ 80
B.E.P (in units) = ₹ 8,000 / ₹ 80
B.E.P (in units) = 100 units
B.E.P (in rupees) = 100 units x ₹ 200 per unit
B.E.P (in rupees) = ₹ 20,000
3. Calculation of Margin of Safety:
Margin of Safety = Actual Sales - B.E.P
Actual Sales = Number of units produced x Selling price per unit
Actual Sales = 300 x ₹ 200
Actual Sales = ₹ 60,000
Margin of Safety = ₹ 60,000 - ₹ 20,000
Margin of Safety = ₹ 40,000
Conclusion:
Hence, the P/V Ratio is 40%, B.E.P is ₹ 20,000 and Margin of Safety is ₹ 40,000 for the given data.
Given,
Number of units produced = 300
Selling price per unit = ₹ 200
Marginal cost per unit = ₹ 120
Fixed cost for the month = ₹ 8,000
1. Calculation of P/V Ratio:
P/V Ratio = (Contribution / Sales) x 100
Contribution = Selling price per unit - Marginal cost per unit
Contribution = ₹ 200 - ₹ 120
Contribution = ₹ 80
Sales = Number of units produced x Selling price per unit
Sales = 300 x ₹ 200
Sales = ₹ 60,000
P/V Ratio = (₹ 80 / ₹ 200) x 100
P/V Ratio = 40%
2. Calculation of B.E.P:
B.E.P (in units) = Fixed cost / Contribution per unit
Contribution per unit = Selling price per unit - Marginal cost per unit
Contribution per unit = ₹ 200 - ₹ 120
Contribution per unit = ₹ 80
B.E.P (in units) = ₹ 8,000 / ₹ 80
B.E.P (in units) = 100 units
B.E.P (in rupees) = 100 units x ₹ 200 per unit
B.E.P (in rupees) = ₹ 20,000
3. Calculation of Margin of Safety:
Margin of Safety = Actual Sales - B.E.P
Actual Sales = Number of units produced x Selling price per unit
Actual Sales = 300 x ₹ 200
Actual Sales = ₹ 60,000
Margin of Safety = ₹ 60,000 - ₹ 20,000
Margin of Safety = ₹ 40,000
Conclusion:
Hence, the P/V Ratio is 40%, B.E.P is ₹ 20,000 and Margin of Safety is ₹ 40,000 for the given data.
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000?
Question Description
A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000?.
A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000?.
Solutions for A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000? defined & explained in the simplest way possible. Besides giving the explanation of
A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000?, a detailed solution for A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000? has been provided alongside types of A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000? theory, EduRev gives you an
ample number of questions to practice A Company produces 300 units of a single article and sells it at ₹ 200 each . The marginal cost of production is ₹ 120 • per unit and Fixed cost for the month is ₹ 8,000 . Find out : ( a ) P / V Ratio , ( b ) B.E.P. , (c) Margin of Safety [ Ans . ( a ) 40 % , ( b ) ₹ 20,000 , ( c ) , ₹ 40,000? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup