A company which has a margin of safety of ₹4,00,000 makes a profit of ₹80,000. If its break-even sales is ₹25,00,000, then fixed cost will be :

CS Executive · Cost and Management Accounting · PYQS · December 2021
A company which has a margin of safety of ₹4,00,000 makes a profit of ₹80,000. If its break-even sales is ₹25,00,000, then fixed cost will be :
(A) ₹5,00,000
(B) ₹4,80,000
(C) ₹4,50,000
(D) ₹4,40,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Marginal Costing

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