MARGINAL COSTING AND ABSORPTION COSTING LECTURE MUMBAI UNIVERSITY IDOL

 MARGINAL COSTING AND ABSORPTION COSTING  Formula  Contribution Sale Profit –Volume (P/V) Ratio Breakeven Point: Margin of safety:      1) Contribution Contribution= Sales-Variable cost  Or  Contribution= F+P Contribution= Sales X PV Ratio   2) Sale Sales = Variable Cost + Contribution  Sales =   Contribution                   PV Ratio   3) Profit –Volume (P/V) Ratio P/V Ratio = Contribution X 100                                     Sales   P/V Ratio = Difference in Profits                             Difference in sales      4) Breakeven point Breakeven point (in units)=           Fixed cost                                                      Contribution per unit    Break–even Point (in Rs.) =       Fixed Cost x sales                                                        Contribution per unit     5) Margin of safety:  Margin of Safety = Actual Sales-Break even sales    Margin of safety =    Net profit                                           P/V Ratio     6) Required Sales Required Sales= Fixed Cost + Desired Profit                     PV Ratio   Required Sales( in Units) =  Fixed Cost + Desired Profit                                                       Contribution Per Unit   If You Want Video Related This Formula And Solve Question So Please Click Here