A firm's fixed operating cost is ₹40,000. Its degree of operating leverage is 3. If its contribution is 20% of sales, the amount of variable cost will be (₹): (A) 60,000 (B) 3,00,000 (C) 2,40,000 (D) 2,60,000
CS Executive · Financial and Strategic Management · PYQS · December 2022
A firm's fixed operating cost is ₹40,000. Its degree of operating leverage is 3. If its contribution is 20% of sales, the amount of variable cost will be (₹): (A) 60,000 (B) 3,00,000 (C) 2,40,000 (D) 2,60,000
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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