When fixed costs are ₹90,000, ratio of variable cost to sales is 75% and the break-even point occurs at 60% of the capacity sales, the capacity sales is: (A) ₹4,50,000 (B) ₹5,60,000 (C) ₹6,00,000 (D) ₹7,50,000
CS Executive · Cost and Management Accounting · PYQS · December 2017
When fixed costs are ₹90,000, ratio of variable cost to sales is 75% and the break-even point occurs at 60% of the capacity sales, the capacity sales is: (A) ₹4,50,000 (B) ₹5,60,000 (C) ₹6,00,000 (D) ₹7,50,000
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Marginal Costing
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