Selling price per unit Rs.

40
Marginal cost per unit Rs.24
Fixed cost per annum Rs. 16000

sp 40 sp 36
vc 24 vc 24
FC 16000 FC 16000

PV Ratio 0.4 PV Ratio 0.333333

40% 33%
BEP(rupees) 40000 BEP(rupees) 48000
BEP(units) 1000 BEP(units) 1333.333

S x P/V Ratio = FC + P

S (in Rs) 18000

Sales 45000
units 1125

s 60000
24000
Profit 8000
 Fixed Cost = Rs.40, 000
Profit = Rs. 20,000
B.E.P. = Rs. 80,000

BEP (Rupees) = Total Fixed Costs

P/V Ratio

pv Ration 0.5

Sales x P/V Ratio = F+ P

Sales 60000
120000
Margin of Safety = Sales – B.E.P Sales

40000
 A B C
S 150000 90000 60000 300000
VC 120000 63000 36000 219000
VC Price per unit 0.8 0.7 0.6
Cont 30000 27000 24000 81000
Cont per unit 0.2 0.3 0.4
FC 40500
P 40500 that S – V = F + P
PV Ratio 20% 30% 40%

A B C
S 90000 120000 90000 300000
VC 72000 84000 54000 210000
Cont 18000 36000 36000 90000 S-V
FC 40500 F
P 49500
PV Ratio 20% 30% 40%
V=F+P