Sales increased from ₹750 Lakh to ₹875 Lakh. If P/V Ratio is 30%, then increase in the contribution will be :

CS Executive · Cost and Management Accounting · PYQS · December 2018
Sales increased from ₹750 Lakh to ₹875 Lakh. If P/V Ratio is 30%, then increase in the contribution will be :
(A) ₹262 Lakh
(B) ₹225 Lakh
(C) ₹37.50 Lakh
(D) ₹125 Lakh

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Marginal Costing

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