The P/V ratio of a company is 40%. If the company reduces its selling price by 20%, the required percentage of increase in sales value to maintain the same profit is: (A) 20% (B) 40% (C) 60% (D) 75%
CS Executive · Cost and Management Accounting · PYQS · December 2017
The P/V ratio of a company is 40%. If the company reduces its selling price by 20%, the required percentage of increase in sales value to maintain the same profit is: (A) 20% (B) 40% (C) 60% (D) 75%
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Marginal Costing
Related Questions in this Topic
- 99. A factory is currently working at 50% of its capacity. At this level the variable, semi-variable and fixed expenses ...
- 91. When fixed cost is ₹8,000 and break-even point is ₹20,000, find the profit when sales is ₹30,000 :
- 78. Maximum quantity of production and minimum quantity of production is 10,000 and 5,000 units respectively. Maximum to...
- 46. P/V Ratio of a company is 17% and its Margin of Safety is ₹4,08,000, calculate the amount of profit to the company.
- 44. When the sales increased from ₹40,000 to ₹60,000, profit increased by ₹5,000. Calculate P/V ratio.