The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs 30,00,000 then Break Even Point in Rs will be

A).  Rs 9,00,000

B).  Rs 18,00,000

C).  Rs 5,00,000

D).  None of the above

 Rs 18,00,000

Break even point = 3000000 / (100% - 40%)
= Rs. 1800000

MOSR =[( TS- B-E point ) 100]/TS 

or, 40 =[ ( 3000000 - x) 100] / 3000000

or, 3000000 - x = [(3000000) 40] / 100

or, x - 3000000 = - 1200000

or, x = 3000000 - 1200000

or, x = 1800000 

       There for, Brake-Even point = ₹ 1800000

BEP=TOTAL SALES - MS

BEP= 30,00,000-40%=18,00,000

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