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VIP Ltd provides you the following information pertaining to the first quarter ended june 30th 2019 fixed expenses rs 22500 , sales value rs 75000 , profit rs 15000 the margin of safety first quarter ended june 30th 2019 is |
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Answer» Answer: Margin of safety = PROFIT(15000)/Profit VOLUME ratio(50%) Margin of safety =30000 Explanation: contribution =Profit(15000) +Fix expense (22500) contribution=37500 Profit volume ratio = contribution(37500) /SALES(75000) Profit volume ratio= 50% |
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