ExamVeda
Login
Home

The P v ratio of a company is 50 and margin...

This question belongs to Commerce Costing
Costing
?

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

Answer & Solution
Correct Answer: Option B
Break even point = Sales - Margin of Safety
= 3000000 * (100% - 40%)
= Rs. 1800000
Examveda
Question posted by Examveda
Community

Join the Discussion

2 Comments
Devendra Sharma
Devendra Sharma 5 years ago
Incorrect solution. Please provide the correct one.
Madhusmita Mansi
Madhusmita Mansi 6 years ago
How it could be option b...plz provide the formula
Keep Learning

Related Questions on Costing

Basic objective of cost accounting is ________
A. tax compliance. B. financial audit. C. cost ascertainment. D. profit analysis.
Process costing is suitable for ________.
A. hospitals B. oil refing firms C. transport firms D. brick laying firms
Cost classification can be done in ________.
A. two ways B. three ways C. four ways D. several ways
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost B. historical cost C. sunk cost D. shutdown cost
More Related Questions on Costing