1.

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

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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