00:01
Here for the solution, the part a, break -even point is equal to total fixed cost divided by contribution margin per unit.
00:12
Here by substituting the value of total fixed cost and contribution margin per unit, we get 4500000000.
00:24
Now, contribution per unit is equal to selling price minus variable cost.
00:31
By substituting the values, we get 275 minus 125, which is equal to 150.
00:38
Bep in amount is equal to 3000 multiply by 275, which is equal to 82500 omr.
00:48
Now for the part b, pv ratio is equal to contribution per sales multiply by 100.
00:56
By substituting the values we get 150 divided by 275 multiply by 100 which is equal to 54 .55 % this is the pv ratio.
01:08
Now for the part c, margin of safety is the difference between the total sales and break -even sales...