The P/V ratio and margin of safety of E Ltd. are respectively 40% and 30%. If the sales volume is ₹40,00,000, the profit would be :

CS Executive · Corporate and Management Accounting · PYQS · December 2022
The P/V ratio and margin of safety of E Ltd. are respectively 40% and 30%. If the sales volume is ₹40,00,000, the profit would be :
(A) ₹6,00,000
(B) ₹5,20,000
(C) ₹4,80,000
(D) ₹4,00,000

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Management Accounting

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