P/V Ratio of A Ltd. is 50% and Margin of Safety is 40%. What is the amount of Break Even Point and Net Profit if the sales volume is ₹50 lakh ?

CS Executive · Corporate and Management Accounting · PYQS · June 2022
P/V Ratio of A Ltd. is 50% and Margin of Safety is 40%. What is the amount of Break Even Point and Net Profit if the sales volume is ₹50 lakh ?
(A) ₹30 lakh and ₹20 lakh
(B) ₹20 lakh and ₹20 lakh
(C) ₹10 lakh and ₹30 lakh
(D) ₹30 lakh and ₹10 lakh

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Management Accounting

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