ExamVeda
Login
Home

When fixed cost is Rs 10 000 and the profit volume...

This question belongs to Commerce Accounting
Accounting
?

When fixed cost is Rs. 10,000 and the profit volume ratio is 20% then break even point will be

Answer & Solution
Correct Answer: Option C
Let's discuss the solution. Join the discussion
Examveda
Question posted by Examveda
Community

Join the Discussion

1 Comment
Abduselam Isak
Abduselam Isak 3 years ago
The break-even point can be calculated using the formula:

Break-even point = Fixed costs / Profit volume ratio

Given that the fixed cost is Rs. 10,000 and the profit volume ratio is 20%, we can substitute these values into the formula:

Break-even point = 10,000 / 0.20

Break-even point = 50,000

Therefore, the break-even point is Rs. 50,000.

So, the correct answer is C. Rs. 50,000.
Keep Learning

Related Questions on Accounting

Accounting provides information on
A. Cost and income for managers B. Company's tax liability for a particular year C. Financial conditions of an institutions D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets B. Fixed assets C. Intangible assets D. Investments
Patents, Copyrights and Trademarks are
A. Current assets B. Fixed assets C. Intangible assets D. Investments
More Related Questions on Accounting