What is the Break-Even Point (BEP) in sales and Margin of Safety given these financial figures?

Here are the solutions to questions 71, 72, 73, 74, 75, 76, and 77: 71. Sales ₹ 5,00,000; Variable Cost ₹ 3,00,000; Profit ₹ 1,00,000 then B.E.P. will be: Step 1: Calculate Contribution. Contribution = Sales - Variable Cost Contribution = ₹5,00,000 - ₹3,00,000 = ₹2,00,000 Step 2: Calculate Fixed Cost. Fixed Cost = Contribution - Profit Fixed Cost = ₹2,00,000 - ₹1,00,000 = ₹1,00,000 Step 3: Calculate P/V Ratio. P/V Ratio = ContributionSales × 100 P/V Ratio = (₹2,00,000)/(₹5,00,000) × 100 = 40\% Step 4: Calculate Break-even Point (in Sales). B.E.P. (in Sales) = Fixed CostP/V Ratio B.E.P. (in Sales) = (₹1,00,000)/(40\%) = (₹1,00,000)/(0.40) B.E.P. (in Sales) = ₹2,50,000 The B.E.P. will be: (a) ₹2,50,000 72. Fixed Cost ₹ 1,20,000, Loss ₹ 20,000, Sales ₹ 4,00,000 then Margin of Safety will be: Step 1: Calculate Contribution. Contribution = Fixed Cost - Loss Contribution = ₹1,20,000 - ₹20,000 = ₹1,00,000 Step 2: Calculate P/V Ratio. P/V Ratio = ContributionSales × 100 P/V Ratio = (₹1,00,000)/(₹4,00,000) × 100 = 25\% Step 3: Calculate Break-even Point (in Sales). B.E.P. (in Sales) = Fixed CostP/V Ratio B.E.P. (in Sales) = (₹1,20,000)/(25\%) = (₹1,20,000)/(0.25) B.E.P. (in Sales) = ₹4,80,000 Step 4: Calculate Margin of Safety. Margin of Safety = Actual Sales - B.E.P. (in Sales) Margin of Safety = ₹4,00,000 - ₹4,80,000 = -₹80,000 The Margin of Safety will be: (a) ₹(-) 80,000 73. Fixed Cost ₹ 20,000; Sales ₹ 1,00,000; Variable Cost ₹ 60,000; Desired Profit ₹ 10,000 then required sales will be: Step 1: Calculate Contribution from given Sales and Variable Cost. Contribution = Sales - Variable Cost Contribution = ₹1,00,000 - ₹60,000 = ₹40,000 Step 2: Calculate P/V Ratio. P/V Ratio = ContributionSales × 100 P/V Ratio = (₹40,000)/(₹1,00,000) × 100 = 40\% Step 3: Calculate Required Sales for Desired Profit. Required Sales = Fixed Cost + Desired ProfitP/V Ratio Required Sales = (₹20,000 + ₹10,000)/(40\%) = (₹30,000)/(0.40) Required Sales = ₹75,000 The required sales will be: (a) ₹75,000 74. Sales ₹ 4,00,000, P/V Ratio 30%, Fixed Cost ₹ 40,000 then amount of profit will be: Step 1: Calculate Contribution. Contribution = Sales × P/V Ratio Contribution = ₹4,00,000 × 30\% = ₹4,00,000 × 0.30 Contribution = ₹1,20,000 Step 2: Calculate Profit. Profit = Contribution - Fixed Cost Profit = ₹1,20,000 - ₹40,000 Profit = ₹80,000 The amount of profit will be: (a) ₹80,000 75. When B.E.P. is 500 units and contribution per units is ₹ 2, then fixed cost would be: Step 1: Use the formula for Break-even Point in units. B.E.P. (in units) = Fixed CostContribution per unit Step 2: Rearrange to find Fixed Cost. Fixed Cost = B.E.P. (in units) × Contribution per unit Fixed Cost = 500 units × ₹2/unit Fixed Cost = ₹1,000 The fixed cost would be: (b) ₹1,000 76. If Sales ₹ 60,000 and P/V Ratio is 30% then variable cost will be: Step 1: Calculate Contribution. Contribution = Sales × P/V Ratio Contribution = ₹60,000 × 30\% = ₹60,000 × 0.30 Contribution = ₹18,000 Step 2: Calculate Variable Cost. Variable Cost = Sales - Contribution Variable Cost = ₹60,000 - ₹18,000 Variable Cost = ₹42,000 The variable cost will be: (a) ₹42,000 77. Variable Cost per unit remains... with changes in level of activity. Variable cost per unit is a cost that remains constant per unit of output, regardless of the level of production. Total variable cost changes with the level of activity, but the cost per unit does not. The correct answer is: (a) Constant