A company, which has a margin of safety of ₹2,00,000 makes profit of ₹40,000. If the fixed cost is ₹2,50,000, break-even sales of the company would be :

CS Executive · Cost and Management Accounting · PYQS · June 2018
A company, which has a margin of safety of ₹2,00,000 makes profit of ₹40,000. If the fixed cost is ₹2,50,000, break-even sales of the company would be :
(A) ₹15,00,000
(B) ₹12,50,000
(C) ₹10,00,000
(D) ₹20,00,000

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Cost and Management Accounting

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