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

Answer: Option B

Solution(By Examveda Team)

Break even point = Sales - Margin of Safety
= 3000000 * (100% - 40%)
= Rs. 1800000